ISLAMABAD: The government reduced petrol and diesel prices on Wednesday by Rs2 per litre each for the current fortnight ending May 15.

In a late-night announcement, the Ministry of Finance said Ogra had reviewed and adjusted prices for petroleum products in view of the fluctuations in the international market.

The ex-depot price of high-speed diesel (HSD) was decreased by Rs2 per litre (2 per cent) to Rs256.64 from Rs258.64 over the past fortnight. Most of the transport sector runs on HSD.

Its price is considered inflationary as it is mostly used in heavy transport vehicles, trains and agricultural engines like trucks, buses, tractors, tube-wells and threshers and particularly adds to the prices of vegetables and other eatables.

LPG cylinder rate cut by Rs38 for May

The ex-depot petrol price was set at Rs252.63 per litre against Rs254.13 at present, down by Rs2. Petrol is mostly used in private transport, small vehicles, rickshaws and two-wheelers and directly impacts the budget of middle and lower-middle classes.

At present, the government charges about Rs96 per litre tax on both petrol and HSD.

Although general sales tax (GST) is zero on all the petroleum products, the government charges Rs78 per litre petroleum development levy on petrol, diesel and high-octane products that normally impact the masses.

The government also charges about Rs17 per litre customs duty on petrol and HSD, irrespective of their local production or imports. In addition, about Rs17 per litre distribution and sale margins are going to oil companies and their dealers. Petrol and HSD are the major revenue spinners with their monthly sales of about 700,000 to 800,000 tonnes compared to just 10,000 tonnes of monthly demand for kerosene.

LPG rate cut

The Oil and Gas Regulatory Authority (Ogra) also notified a decrease in the price of liquid petroleum gas (LPG) by Rs3.20 per kg, or 1.28pc, for May.

Ogra notified the new price for 11.8kg cylinder at Rs2,405.57 for May against Rs2,443.37 for April. It said the LPG producer price was linked with the Sau­di Aramco contract price and the US dollar rate.

As compared to the previous month, Saudi Aramco CP decreased by 1.8pc while the average dollar exchange rate slightly increased by 0.22pc, resulting in a decrease in LPG consumer price by Rs37.80 per 11.8kg cylinder.

Published in Dawn, May 1st, 2025