ISLAMABAD: Pakistan State Oil (PSO) on Sunday announced a major reduction in jet fuel prices, lowering the rate by Rs111.44 per litre in a move expected to ease operational costs for airlines and potentially reduce domestic and international airfares.
According to the company’s latest pricing update, jet fuel prices have been reduced to Rs330.22 per litre. Aviation industry officials believe the substantial decrease could provide significant financial relief to airlines facing rising operational expenses and may lead to lower ticket prices in the coming weeks.
Meanwhile, the government also revised petroleum prices during its weekly review by reducing the retail prices of both petrol and High-Speed Diesel (HSD) by Rs5 per litre, effective Saturday.
To manage fluctuations in ex-refinery prices while maintaining consumer relief, the government made major adjustments to the Petroleum Levy (PL) and other pricing components.
The Petroleum Levy on petrol was reduced by Rs9.24 per litre, bringing it down from Rs117.41 to Rs108.17. The adjustment helped absorb a Rs6.62 increase in supply costs, along with relief generated through the waiver of a Rs2.69 exchange-rate impact and a 31-paisa reduction in the Inland Freight Equalisation Margin (IFEM).
In contrast, the Petroleum Levy on HSD was increased by Rs9.40 per litre, raising it from Rs42.60 to Rs52.00 per litre.
Despite the higher levy, consumers still benefited from lower diesel prices due to a Rs7.70 decline in ex-refinery costs and a Rs6.70 reduction in the IFEM component for HSD.
Industry analysts say the combined pricing measures are aimed at balancing revenue requirements with consumer relief amid volatile global oil markets and regional geopolitical uncertainties.
Story by Wasim Iqbal
