HSD was reduced by Rs15 per litre, and the cost of gasoline was reduced by Rs40 per litre. As a result, the price of gasoline at the ex-depot decreased to roughly Rs 284 per litre. But the government increased the gasoline tax on HSD by Rs. 5, reaching a historic high of Rs. 55 per litre, just below the Rs. 60 legal upper limit.
According to the budget goal and agreements signed with the International Monetary Fund (IMF), the government must collect roughly Rs869 billion in petroleum levies on petroleum products during the current fiscal year.
After receiving approval from the acting prime minister, the ministry of Finance announced the price reduction late at night.
According to the statement, “the government has decided to revise the consumer prices of petroleum products due to the decreasing trend of petroleum prices in the international market and due to appreciation of the Pak rupee against the US dollar.”
The decision reduced the ex-depot price of gasoline by Rs40 per litre, or 12.4 per cent, to Rs283.38 per litre for the ensuing two weeks. Petrol is frequently used in private transportation, small cars, rickshaws, and two-wheelers, which has a big impact on middle- and lower-class families’ finances.
Similarly, the ex-depot price of HSD was reduced by Rs15 per litre or 4.7 per cent to Rs303.18 per litre from Rs318.18 per litre. The selling price at the pump, however, will probably be higher than Rs304 per litre.
Heavy vehicles, railways, and numerous agricultural engines like trucks, buses, tractors, tube wells, and threshers all use HSD as their principal fuel. Its price has a noticeable inflationary impact, particularly on the costs of vegetables and other food items.
Kerosene oil’s ex-depot price was reduced by Rs22 per litre to Rs215.28 per litre as opposed to Rs237.28 per litre. Light diesel oil (LDO) was priced ex-depot at Rs193.45 per litre as opposed to Rs212.45. While LDO is utilized by grain mills and a few power plants, dishonest people frequently blend kerosene with gasoline and, to some extent, use it to illuminate rural locations.
The price of gasoline and high-speed diesel increased between August 15 and September 15 by Rs58.43 and Rs55.83 per litre, respectively, to a historic Rs331-333 per litre at the retail stage until Sept. 30.