Government Reduces Petrol and Diesel Prices by Rs5 per Litre

LAHORE: The government has announced a reduction of Rs5 per litre in the prices of petrol and diesel, according to an official notification issued by the federal authorities.

As per the notification, the prices of both petrol and high-speed diesel have been reduced by Rs5 per litre each. After the revision, the new price of petrol has been fixed at Rs409.78 per litre, while diesel will now cost Rs409.58 per litre. The new rates will take effect from midnight.

The decision has been taken by the Government of Pakistan amid ongoing adjustments in petroleum pricing.

Meanwhile, reports suggest that petroleum products have become one of the government’s major revenue sources, with consumers bearing a significant tax burden on fuel prices.

According to details, petrol and diesel prices include multiple taxes, levies, and margins that substantially increase the final retail rate. It is reported that without taxes, the base price of petrol is around Rs216.68 per litre, while the government collects nearly Rs198 per litre in taxes and charges, along with an additional premium component.

Similarly, diesel, widely used in transport and agriculture, carries heavy taxation. Reports indicate that around Rs113.71 per litre is added in taxes, including petroleum levy and customs duty. Various margins, distribution costs, freight charges, and environmental levies also contribute to the final price.

Analysts say that the heavy taxation structure continues to keep fuel prices high, despite fluctuations in global oil markets, placing additional pressure on consumers and businesses.