Government announces reduction in petrol, diesel prices

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The government has announced a reduction in fuel prices by up to Rs5, effective from February 16, 2025.

High-speed diesel (HSD), which is widely used in agriculture and transport sectors, will see a price drop of Rs4 per litre. The new price for HSD will be Rs263.95, down from the previous rate of Rs267.95 per litre.

In addition to HSD, the price of petrol has also been reduced by Rs1 per litre. The new petrol price will be Rs256.13, following a similar decrease in the second fortnight of February 2025.

Furthermore, the prices for kerosene and light diesel have been lowered by up to Rs5 per litre. Kerosene will now be available at Rs171.65 per litre, while light diesel will cost Rs155.81 per litre.

 

In a statement, the finance ministry said that the Oil & Gas Regulatory Authority (OGRA) had reviewed and adjusted consumer prices for petroleum products in light of recent fluctuations in the international oil market.

It further stated that the prices of these products had been fixed for the next fortnight of the current month.

Earlier, it was reported that the price of diesel was expected to be significantly reduced by Rs9.11 per litre for the fortnight beginning on February 16, in line with fluctuations in global oil prices.

Pakistan is a net importer of petroleum products therefore any reduction in their prices is attributed to movements in global markets.

Local prices are calculated while considering the existing tax rates and the inland freight equalisation margin. There is no adjustment in terms of rupee-dollar exchange rate.

The government is currently charging Rs60 per litre in petroleum levy on petrol and high-speed diesel each. The levy was supposed to be invested in the development of oil sector like setting up storages but it has never been utilised for the intended purpose. The government used the revenue to meet its current expenditures.