Pakistani government again slashes fuel prices, offering some respite to the common masses of Pakistan. The reduction in fuel prices includes a decrease in petrol price by Rs4 per litre and diesel price by Rs2 per litre. This revision has taken place from Friday, and the new rates have come into effect on June 13 (Saturday).
Govt reduces petrol price by Rs4, diesel price cut by Rs2 per litre
With the new revision in fuel prices, the price of petrol is set to Rs373.78 per litre, whereas the new rate for high-speed diesel comes to Rs378.78 per litre. These rates are in place of Rs377.78 for petrol and Rs380.78 for diesel, respectively. As per the announcement of the Petroleum Division, these new prices shall be effective for next week under the petrol carbon levy hike.
Fifth Straight Weekly Reduction in Fuel Prices
It is noteworthy that it is for the fifth successive week that the fuel prices have been lowered in Pakistan. In the last few weeks, the cost of petrol has decreased by Rs41 per litre, and this reflects a consistent trend in the decline in fuel prices. During the last week, petrol prices were further lowered by Rs4 per litre. But it was only during the last adjustment in prices that high-speed diesel prices remained the same.
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Taxes and Charges Still High on Fuel
Despite being cheaper, fuel is highly taxed in Pakistan. For instance, high-speed diesel attracts a charge of approximately Rs100 per liter on different fronts such as custom duty, petroleum levy, climate change levy, and freight adjustments. On its part, petrol is taxed highly and the total charges per liter stand at approximately Rs125. Kerosene oil attracts charges amounting to approximately Rs 21 per liter for petroleum levy. Light diesel oil is taxed a total of about Rs16 per liter.
Fuel Demand and Its Importance in Daily Life
Petrol and diesel are the two major fuel types utilized in Pakistan. The monthly consumption of both these fuel types is very high; it is estimated to be somewhere between 700,000 and 800,000 tonnes. On the other hand, kerosene is a fuel whose demand is much less; it is only 10,000 tonnes per month under petroleum levy IMF revenue. Petrol fuel is commonly used in motorcycles, small cars, rickshaws, and private transportation. The prices of petrol have an effect on the daily traveling expenses of the lower and middle classes that use this fuel for transport purposes.
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Diesel fuel is used extensively by large transport facilities, including lorries, trains, and tractors. For this reason, diesel prices also affect commodity production and agriculture costs. Fuel prices have been reviewed on a weekly basis, that is, every Friday night. This practice was adopted due to fuel shortages related to international conflicts over fuel oil supplies. Moreover, the threat of shortage of fuel supply globally and interruptions in important shipping channels has also impacted the local fuel prices. Fuel prices are revised from time to time according to market trends and taxation policies.
The recent decrease in petrol and diesel prices brings some respite for the people of Pakistan. But nevertheless, prices of fuel continue to be affected by taxes and global market situations. More changes can be expected to take place in the coming weeks due to weekly revisions in prices. News source eTimes Pakistan.
