ISLAMABAD: The government has almost maintained the prices of key petroleum products, with the exception of Re1 per litre increase in the petrol price, for the next fortnight.

The price of diesel has been maintained at Rs254.64 per litre while the petrol price has been increased by Re1 to Rs253.53 per litre. Amid price stability in the international market and no major change in the value of the rupee against the US dollar, the prices of other petroleum fuels remained largely unchanged.

The petrol and diesel prices are announced by the finance ministry, and the rates of kerosene oil as well as the light diesel oil (LDO) are finalised by the Oil and Gas Regulatory Authority. The price of kerosene and that of LDO will be Rs165 and Rs152 per litre with minor changes.

In June, Pakistan’s consumption of petroleum products, including kerosene oil and diesel, is less than that of May. However, petrol consumption in June increases compared to May, reaching around 1.5 million tonnes. This surge will be primarily driven by a massive movement of families due to Eid.

Petrol is mostly used in private transport, small vehicles, rickshaws and two-wheelers and has a direct effect on middle- and lower-income households.

The government has not been passing on the benefits of price stability to consumers, as the focus was on collecting the petroleum levy on petroleum products to redirect funds to subsidise electricity prices.

It also later decided to redirect the levy to finance a canal and road project in Balochistan.

At present, the government charges about Rs96 per litre tax on both petrol and high-speed diesel.

Although general sales tax 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 high-speed diesel, irrespective of their local production or imports. In addition, about Rs17 per litre distribution and sale margins are going to oil companies and dealers.

LPG price

The Oil and Gas Regulatory Authority (Ogra) also notified the maximum price of LPG, effective June1, 2025. The price of LPG decreased by Rs4.62 per kg, or 1.88 per cent for June.

The authority had announced a decrease of Rs3.20 per kg for May.

According to the notification, the new price for an 11.8kg cylinder stood at Rs2,838.31 for June against Rs2,892.91 for May, making the cylinder cheaper by Rs54.6 per kg.

The new notified LPG consumer price is Rs240.53 per kg. However, the retailers charge an additional amount based on the geographical locations and the market dynamics.

Published in Dawn, June 1st, 2025