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Thursday, July 18, 2024

Fuel Prices Reduced as Caretaker Government Takes Action

Caretaker government has lowered petrol prices by Rs8 per litre and high-speed diesel prices by Rs11 per litre for the next two weeks due to fluctuations in international oil prices and a stronger exchange rate.

The caretaker government has announced a substantial reduction in fuel prices, bringing relief to consumers. The price of petrol has been decreased by Rs8 per litre, while high-speed diesel (HSD) is now Rs11 per litre cheaper for the next two weeks.

Reasons Behind the Price Adjustment

The Ministry of Finance issued a notification explaining that the adjustment in fuel prices is primarily due to fluctuations in international petroleum product prices and the strengthening of the exchange rate. These factors have created an opportunity for the government to lower fuel costs for the benefit of the public.

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Rupee’s Appreciation and Positive Impact

The Pakistani rupee exhibited significant improvement throughout the past week, appreciating by 1.4 percent against the US dollar in the interbank market. This promising trend positions the Pakistani rupee as one of the best-performing currencies this month.

Anticipated Reduction in Fuel Prices

The reduction in petrol and HSD prices aligns with earlier expectations. Caretaker Commerce and Industries Minister Gohar Ejaz had expressed optimism about favorable developments in fuel prices on October 1. These price cuts follow a period of price increases between August 15 and September 15, during which petrol and HSD prices rose significantly.

Current Taxation and Levies

As of now, all petroleum products carry a zero percent General Sales Tax (GST). However, the government imposes a Rs60 per litre petroleum development levy on petrol, as well as Rs50 per litre on HSD and high-octane blending components and 95 RON (Research Octane Number) petrol. Additionally, customs duty of approximately Rs22-23 per litre is applied to petrol and HSD.

This reduction in fuel prices is expected to ease the financial burden on consumers and provide relief in a challenging economic environment.