The Pakistani government has reduced petrol prices by up to Rs40 per liter, bringing relief to people who have been struggling with the economic crisis since mid-2022.
The price of petrol has been reduced from Rs323.38 per liter to Rs283.38 per liter, effective from October 16.
This reduction is in line with fluctuations in global oil prices and the strengthening of the Pakistani rupee against the US dollar.
Petrol is predominantly used in motorbikes and cars as an alternative to compressed natural gas (CNG), especially in the Punjab province where indigenous gas is not available at CNG retail outlets.
The government has also reduced the price of high-speed diesel (HSD) by Rs15 per liter, bringing it down from Rs318.18 to Rs303.18 per liter.
The government has increased the petroleum levy by Rs5 per liter on HSD, raising it from Rs50 to Rs55 per liter. A petroleum levy of Rs60 per liter is charged on petrol.
The government also imposes a petroleum levy of Rs50 per liter on the high-octane blending component (HOBC) and Rs32.56 per liter on E-10 gasoline.
The government collects approximately Rs75 billion in revenue from petroleum levy from oil consumers every month.
Oil marketing companies (OMCs) have seen their margins increase by Rs0.33 per liter on petrol, from Rs7.08 to Rs7.41 per liter, and by Rs0.47 per liter on HSD, from Rs6.94 to Rs7.41 per liter.
