Govt offsets petrol relief by levy hike

The federal government has revised petroleum product pricing, increasing kerosene oil rates while adjusting petroleum levy structures on petrol and high-speed diesel (HSD).

According to official documents, Kerosene oil prices have been raised by Rs8.70 per litre, bringing the new price to Rs280.70 per litre compared to the previous rate of Rs272.

Meanwhile, the government has significantly increased the petroleum levy on petrol by Rs24.74 per litre. The levy has been raised from Rs91.34 to Rs116.08 per litre, effectively offsetting any potential relief for consumers.

In contrast, the levy on HSD has been reduced by Rs24.34 per litre, lowering it from Rs68.93 to Rs44.59 per litre. This adjustment has helped maintain the existing price of diesel despite broader pricing pressures.

Officials said the restructuring of levies is part of the government's fiscal management strategy, though it has resulted in limited relief for petrol consumers amid ongoing inflationary concerns.

The government on Friday reduced the price of petrol by Rs4 per litre while keeping the price of HSD unchanged for the next one week, according to a notification issued by the Ministry of Energy's Petroleum Division.

It stated that the ex-depot price of petrol was reduced to Rs377.78 per litre from Rs381.78 per litre, while the price of HSD remained unchanged at Rs380.78 per litre.

The latest adjustment came after a series of fuel price revisions in response to fluctuations in international oil markets. Last week, the government slashed the prices of both petrol and diesel by Rs22 per litre, providing significant relief to consumers amid changing global energy prices.

Petrol is used by motorbikes and cars. HSD is widely used in the transport and agriculture sectors.