Prime Minister Shehbaz Sharif approved a diesel price cut of Rs10.86 per litre starting August 1, 2024. This adjustment aligns with global oil price reductions.
Petrol, kerosene, and light diesel oil prices have also decreased. The Oil & Gas Regulatory Authority calculated these rates based on international market trends.
From August 1, 2024, the finance ministry announced lower Motor Spirit and HSD prices for the next fortnight.
HSD, vital for agriculture and transport, now costs Rs272.77 per litre, a Rs10.86 reduction. This is likely to lower consumer inflation.
Petrol, used in vehicles and as a CNG alternative, is now Rs269.43 per litre, down Rs6.17.
Kerosene, essential for cooking in remote areas, dropped to Rs177.39 per litre, a Rs6.32 cut. The Pakistan army, a major user, mainly consumes it in the north.
Light diesel oil, primarily for industrial use, decreased by Rs5.72 to Rs160.53 per litre.
The government imposed a Rs60 per litre petroleum levy on petrol and HSD and Rs0.05 on kerosene. No levy applies to LDO.
To meet revenue targets, the petroleum levy rate might increase. Sales tax collection is zero, benefiting provincial budgets while federal coffers gain from the petroleum levy.
Meanwhile, Ogra raised LPG prices by Rs2.28 per kilogram for August 2024, affecting domestic and commercial cylinder costs.
