The federal government on Sunday announced a reduction in petroleum prices for the upcoming fortnight, lowering petrol by Rs2 per litre and high-speed diesel (HSD) by Rs4.79 per litre.
According to a notification issued by the Petroleum Division, the new prices—effective December 1—set HSD at Rs279.65 per litre and petrol at Rs263.45 per litre. The revision follows recommendations from the Oil and Gas Regulatory Authority (OGRA).
HSD, widely used in heavy transport, agriculture machinery, and freight movement, has a direct bearing on inflation, influencing the cost of food items and essential commodities. Petrol, commonly used in private vehicles, rickshaws, and two-wheelers, significantly impacts middle- and lower-income households.
Despite zero GST on petroleum products, the government continues to collect around Rs99 per litre through various charges. These include a petrol levy and climate support levy—Rs79.50 per litre on diesel and Rs80.52 per litre on petrol—along with Rs17–18 per litre in customs duty. An additional Rs17 per litre covers distribution and dealer margins.
Petrol and HSD remain the most consumed fuels, with combined monthly usage between 700,000 and 800,000 tonnes, far exceeding kerosene consumption of just 10,000 tonnes.
Petroleum levy collections stood at Rs1.161 trillion in FY25 and are projected to rise by 27% to Rs1.47 trillion in the current fiscal year.
Story by Tahir Sherani
