 ISLAMABAD: A proposal has been submitted to Prime Minister Shehbaz Sharif recommending a reduction in fuel prices across the country, potentially offering significant relief to consumers amid persistent inflation.
The proposal suggests a cut of Rs 8.27 per litre in petrol prices, which would lower the rate from Rs 255.63 to Rs 246.36 per litre. Similarly, a reduction of Rs 6.96 per litre has been proposed for high-speed diesel, bringing its price down from Rs 258.64 to Rs 251.68 per litre.
Light diesel and kerosene oil are also expected to see a reduction of Rs 7.21 per litre. The final decision on these revisions rests with the Prime Minister and is expected soon.
Despite the proposed cuts, the current breakdown of fuel pricing reveals the heavy burden of taxes and levies. According to official documents, Rs 107.12 per litre is being charged in taxes, duties, and margins on petrol, while Rs 104.59 per litre is added to the price of high-speed diesel under the same heads.
A petroleum levy of Rs 70 per litre—the highest in Pakistan’s history—is imposed on both petrol and diesel. Additionally, customs duties of Rs 15.28 and Rs 15.78 per litre are levied on petrol and diesel, respectively.
Dealers receive a commission of Rs 8.64 per litre, and oil marketing companies earn a margin of Rs 7.87 per litre on both fuel types. The Inland Freight Equalization Margin (IFEM) stands at Rs 5.33 per litre for petrol and Rs 2.30 for diesel.
The ex-refinery price of petrol, excluding duties and taxes, is Rs 148.51 per litre, while consumers are currently paying Rs 255.63. For high-speed diesel, the ex-refinery price is Rs 154.06 per litre, compared to a retail price of Rs 258.64.
If approved, the proposed reductions could offer short-term financial relief to consumers, though high levies and duties continue to weigh heavily on pump prices.
