The Government of Pakistan on Monday decreased the price of high-speed diesel by Rs. 14/liter while keeping the price of petrol unchanged for the fortnight spanning Dec. 16-31, citing favorable international market prices.
In a notification, the Petroleum Division said the revision followed movements in international markets and recommendations of the Oil and Gas Regulatory Authority (OGRA). It said the price of high-speed diesel was being reduced from Rs. 279.65/liter to Rs. 265.65/liter, while petrol price would remain unchanged at Rs. 263.45/liter.
Petrol is mainly used in private transportation, small vehicles, rickshaws, and two-wheelers with higher fuel prices significantly impacting the budgets of the middle and lower-middle classes, who primarily consume petrol for commuting.
High-speed diesel is mostly utilized by the transport sector, with price revisions considered inflationary since it is predominantly used in heavy goods transport vehicles, trucks, buses, trains, and agricultural machinery such as tractors, tube wells, and threshers.
The consumer price of fuel products also includes around Rs. 78/liter on diesel and Rs. 82/liter on petrol as petrol levy and Rs. 2.50/liter climate support levy. Additionally, there is Rs. 16-17/liter being charged as custom duty and around Rs. 17/liter is factored in as distribution and sale margins for oil companies and their dealers.