Petrol, diesel prices slashed significantly

The federal government has announced a reduction in petrol and high-speed diesel (HSD) prices for the second fortnight of August 2024.

Petrol prices have been slashed by up to Rs8.47 per litre, while HSD prices have been reduced by Rs6.7 per litre. This adjustment reflects the recent fluctuations in global oil prices.

The Oil and Gas Regulatory Authority (Ogra) determined the new consumer prices based on changes in the international market.

The prime minister approved this reduction as a gesture for August 14, although the government had the alternative of increasing taxes to offset the impact of lower oil prices.

Following the reduction, petrol prices will drop to Rs260.96 per litre from Rs269.43 per litre. HSD prices will decrease to Rs266.07 per litre from Rs272.77 per litre.

Petrol, a common alternative to CNG, is widely used in motorbikes and cars, while HSD is essential for farmers and transporters.

In Punjab, where CNG users have been receiving imported gas, there has been a higher demand for petrol. However, concerns have been raised about Iranian smuggled petrol meeting this demand, affecting the legal oil industry in Pakistan.

The federal government currently imposes a petroleum levy of Rs60 per litre on both petrol and HSD, with no general sales tax applied to either product.

Despite concerns that tensions between Iran and Israel could lead to higher global oil prices, Iran's lack of immediate retaliation has contributed to lower international oil prices, benefiting Pakistan, a net importer of petroleum products.