Government Slashes Petrol Prices as Global Oil Rates Fall
- The federal government has announced a reduction in petrol prices by Rs6.17 per litre, effective August 1.
- The price of high-speed diesel (HSD) has also dropped by Rs10.86 per litre, while kerosene oil and light diesel oil have seen decreases of Rs6.32 and Rs5.72 per litre, respectively.
- The price cuts come after a fall in international petroleum product rates and lower demand from major economies.
In a move to ease the financial burden on consumers, the federal government has cut petrol prices by Rs6.17 per litre, starting August 1. This adjustment follows a decrease in international oil rates and changes in the exchange rate. The new petrol price is set at Rs269.43 per litre, down from Rs275.60.
High-speed diesel (HSD) will now cost Rs272.77 per litre, reflecting a reduction of Rs10.86 from its previous rate of Rs283.63. Kerosene oil has seen a drop of Rs6.32 per litre, bringing its new price to Rs177.39, while light diesel oil (LDO) is now priced at Rs160.53 per litre, down by Rs5.72.
| Products | Existing price | New price | Increase/Decrease |
| Petrol |
Rs275.60 |
Rs269.43 |
– Rs6.17 |
| High-speed diesel |
Rs283.63 |
Rs272.77 | – Rs10.86 |
| Kerosene oil | Rs183.71 | Rs177.39 | – Rs6.32 |
| Light diesel oil | Rs166.25 | Rs160.53 | – Rs5.72 |
The price reductions were anticipated due to a $1.50 per barrel cut in the premium for diesel by Kuwait Petroleum Company (KPC) and decreased demand for petroleum products in major economies such as the United States and China. This follows a previous fortnightly increase in petrol and diesel prices.
Despite these reductions, the petroleum development levy (PDL) remains unchanged at Rs70 per litre, even though it was increased in the federal budget for 2024-25. The relief in fuel prices is expected to benefit the middle and lower-middle classes, who rely heavily on petrol for daily transportation, and will help reduce the impact of high-speed diesel on transport and food prices.