Petrol and diesel prices in Pakistan are anticipated to decrease by approximately Rs10 per litre starting April 15, 2025, due to a notable reduction in international oil prices. Over the past two weeks, global petrol prices have fallen by about $6 per barrel, while high-speed diesel (HSD) has seen a $5 per barrel decrease. This downward trend, coupled with a stable exchange rate, suggests a potential relief for consumers.
Currently, the ex-depot price of petrol stands at Rs254.63 per litre, and HSD at Rs258.64 per litre. The government imposes approximately Rs86 per litre in taxes on both fuels, including a petroleum development levy of Rs70 per litre and customs duties of Rs16 per litre. Additionally, oil companies and dealers receive around Rs17 per litre in distribution and sale margins.
While the general sales tax (GST) on petroleum products remains at zero, the government has committed to the International Monetary Fund (IMF) to implement a carbon levy of about Rs5 per litre starting July 1, 2025, as part of the $1.3 billion Resilience and Sustainability Facility. This upcoming levy may influence future fuel pricing strategies.
It’s important to note that the projected price reductions are contingent upon the government maintaining current tax rates. Officials are cautious about significant price cuts potentially leading to increased demand, which could strain supply chains. Moreover, domestic refineries are advocating for the imposition of GST on petroleum products to bolster revenue.
The final decision on fuel prices will be announced on April 15, 2025, following comprehensive assessments of global oil trends, exchange rates, and fiscal policies.
