Government reduces the price of petrol by Rs2.04 and high-speed diesel (HSD) by Rs6.47.

As per a notice from the Ministry of Finance, the revised rates for petrol and high-speed diesel (HSD) stand at Rs281.34 and Rs296.71, reflecting a reduction of Rs2.04 and Rs6.47 per litre, respectively.

Simultaneously, the prices for kerosene oil and light-diesel oil have experienced a decrease of Rs6.05 and Rs9.01 per litre, bringing them down to Rs204.98 and Rs180.45, respectively.

Earlier forecasts by informed officials anticipated a more substantial decline, ranging from Rs8 to Rs10 per litre for both petrol and HSD, primarily attributed to the downward trend in international market prices.

Officials explained that over the past two weeks, international prices for both HSD and petrol had decreased. However, the advantage of lower global prices was somewhat offset by the depreciation of the rupee against the dollar during the same period, diminishing the benefit for consumers.

In terms of calculations, officials noted that HSD became approximately $9 per barrel cheaper on average, decreasing from around $113 to $104, while the price of petrol dropped by a dollar from $91 to $90. Conversely, the rupee lost Rs6 against the dollar, declining from Rs280 to Rs286.

It's worth mentioning that the government has already reached the maximum permissible limit of Rs60 per litre in petroleum development levy (PDL), in line with legal requirements. The government aims to collect Rs869 billion as PDL on petroleum products for the current fiscal year, aligning with commitments to the International Monetary Fund (IMF).

Despite a gradual increase in per-litre rates for petrol and nearly unchanged rates at Rs50 per litre for diesel in the initial quarter of the fiscal year, PDL collection surpassed Rs222 billion in the first quarter ending September 30, 2023.

On October 31, the government maintained unchanged prices for petrol and HSD. Previously, between August 15 and September 15, both petrol and HSD prices had surged significantly. Subsequently, rates for petrol and diesel saw reductions in two phases, effective from October 1 and 16.

At present, the government imposes approximately Rs80 per litre in taxes on both petrol and HSD. Despite a zero general sales tax on all petroleum products, a Rs60 per litre PDL is applied to both products.