Pakistan plans to cut fuel costs significantly in the fortnight ending March 31, 2025. Petrol prices may drop by Rs14 per litre, from Rs255.63 to Rs242. The price of high-speed diesel (HSD) is likely to drop by Rs8 per litre, from Rs258.64 to Rs250. Kerosene and light diesel oil will also be discounted by Rs10 and Rs7 per litre.
Due to falling oil prices and import premiums, pricing modifications are expected. In the last 10 days, Brent oil prices have dropped by around $3 per barrel, adding to the decrease in domestic fuel expenses.
The government must maintain petroleum product tax rates to make these reductions. There are discussions about raising the petroleum development fee or establishing a carbon tax to secure IMF funding for climate efforts.
The government charges Rs76 per litre for petrol and HSD, including a Rs60 petroleum development fee and Rs16 customs duties. These goods also earn oil corporations and dealers Rs17 per litre in distribution and sale profits.
These price cuts should help consumers, especially middle- and lower-middle-class people who use petrol for private transportation and compact cars. HSD is utilised in large transport vehicles, trains, and agricultural gear; therefore, a drop in pricing could deflate key goods and services.
