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ISLAMABAD: The government on Sunday reduced the price of high-speed diesel (HSD) by Rs3 and kept unchanged that of petrol for next fortnight ending Sept 15.
In a late-night announcement, the Ministry of Finance said that following a review of prevailing international market trend and upon the recommendation of Oil and Gas Regulatory Authority and relevant ministries, the government has revised petroleum prices for next fortnight.
The ex-depot price of HSD was decreased by Rs3 per litre to Rs269.99 for next fortnight from Rs272.99 per litre. Most of the transport sector runs on HSD and 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. Transporters seldom reduce prices.
The ex-depot petrol price was kept unchanged at Rs264.61 per litre. Petrol is mostly used in private transport, small vehicles, rickshaws and two-wheelers and has a direct bearing on the budget of middle- and lower-middle class.
Kerosene and light diesel oil (LDO) rates were also brought down by about Rs1.46 and Rs2.40 per litre, respectively. Kerosene rate was reduced to Rs176.81 from Rs178.27. LDO price dropped by Rs2.40 to Rs159.76 for next two weeks from Rs162.37 per litre.
Meanwhile, Ogra also notified a Rs1.17 per kilo (0.54pc) reduction the consumer price of Liquid Petroleum Gas (LPG) to Rs214.19 per kg. The 11.8kg cylinder was thus set at Rs2,527.47 for September, down Rs13.89 from Rs2,541.36.
The government is charging about Rs37,342 per tonne taxes (GST & Petroleum Levy) on LPG.
The government is currently charging about Rs98 per litre on both petrol and diesel. Although, GST is zero on all the petroleum products, yet the government is charging Rs79.50 per litre on diesel and Rs80.52 per litre on petrol and high octane products on account of petrol levy and climate support levy. This also includes Rs2.25 per litre climate support levy. The government is also charging about Rs16-17 per litre custom 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 – 800,000 tonnes per month compared to just 10,000 tonnes of monthly demand for kerosene.
The government recovered about Rs1.161 trillion through petroleum levy alone in FY2025 and expects this to jump by about 27pc to Rs1.470 trillion during current fiscal year.
Published in Dawn, September 1st, 2025
