ISLAMABAD — The federal government on Friday announced a reduction of Rs4 per litre in the price of petrol, while choosing to maintain the current rate of High-Speed Diesel (HSD) for the weekly pricing cycle ending June 12. The structural adjustments follow shifts in international petroleum pricing over the course of the past week.
Under the updated schedule, the ex-depot price of petrol has dropped from Rs381.78 per litre to Rs377.79 per litre. This marking represents the fourth consecutive weekly decline for petrol, yielding a cumulative relief of approximately Rs37 per litre over the past month. Just last week, the government had delivered a massive cross-the-board cut of Rs22 per litre for both premier motor gasoline and diesel.
Conversely, the ex-depot price of High-Speed Diesel will remain rigidly fixed at Rs380.78 per litre for the incoming week. To offset what would have otherwise been an upward trajectory on an already elevated price point, the government made internal calibrations within its tax margins and administrative levies. HSD remains the country’s primary driver of inflationary pressure due to its extensive application in industrial logistics, heavy freight, and agricultural machinery. The current rate sits significantly lower than the record high of Rs520.35 per litre registered on April 10.
The state infrastructure continues to draw significant revenue from these essential commodities. Currently, HSD carries roughly Rs100 per litre in national taxation via customs duties, the Petroleum Levy (PL), the Climate Support Levy, and the Inland Freight Equalization Margin (IFEM). Petrol carries an even higher tax burden at Rs125 per litre. Additionally, the government continues to levy a petroleum tax of Rs21 per litre on kerosene oil and Rs16 per litre on Light Diesel Oil (LDO). Cumulatively, petrol and HSD represent the operational backbone of national fuel revenues, generating massive monthly sales volumes of 700,000 to 800,000 tonnes each, dwarfing the nominal 10,000 tonnes of monthly demand recorded for kerosene.
