ISLAMABAD: The price of petrol has been reduced by Rs1.86 per litre and that of high-speed diesel (HSD) by Rs3.32 for the next fortnight ending Sept 15.

According to an announcement by the federal government, the new price of petrol will be Rs259.10 per litre, down from Rs260.96 during the last fortnight.

Similarly, the price of HSD came down from Rs266.07 to Rs262.75 per litre.

Prices of other petroleum products have also been reduced, with the oil industry expecting that the decision would dent the smuggling of diesel from Iran.

The new price of kerosene will be Rs169.62, down by Rs2.15 from Rs171.77 per litre.

Likewise, the price of LDO has been reduced by Rs2.97 from Rs157.02 to Rs154.05 per litre.

The price of petrol has been cut by Rs6.51 per litre since the start of the current fiscal year in July, while that of diesel has been reduced by Rs14.7 per litre.

“This figure of Rs14 may not be significant for customers, but it is lucrative for smugglers who trade in huge quantities,” said a senior official of an oil marketing company.

The reduction was the result of a drop in the international market by around $2 per barrel. The fluctuating value of the rupee against the USD also plays a key role in the price determination.

Due to decline in the international market, the price of aviation fuels has dropped by Rs2.20 to Rs190 per litre.

The government has jacked up the maximum limit of petroleum levy to Rs70 per litre in the finance bill to collect Rs1.28 trillion in this fiscal year.

Although the general sales tax is zero on all petroleum products, the government charges Rs60 per litre petroleum development levy on both products and Rs18 per litre custom duty.

Published in Dawn, September 1st, 2024