Govt announces major cut in diesel price; petrol rate holds steady

ISLAMABAD: : The federal government on Monday announced a revision in petroleum prices, keeping the petrol price unchanged while reducing the cost of high-speed diesel.

According to the official notification, the price of petrol has been maintained at Rs263.45 per litre, while the price of high-speed diesel has been reduced by Rs14 per litre, bringing it down to Rs265.65 per litre.

The price adjustment aims to provide relief to consumers amid fluctuating international oil rates.

The new prices will come into effect from midnight tonight and will remain valid until December 31, an official notification said.

The government is charging 37 per cent on per litre petrol under the head of taxes, which translates into Rs96.28 per litre.

The government charges 34 per cent taxes on diesel which translates into Rs94.92 per litre.

Earlier, the Pakistan Petroleum Dealers’ Association (PPDA) rejected the government’s proposed new margin and warned of possible pump closures nationwide.

In a statement, PPDA Chairman Abdul Sami Khan said that due to rising costs, the dealers had requested an 8 per cent margin instead of the current margin of 3.12 per cent.

He warned that if the government does not approve the 8 per cent margin, dealers may be forced to close petrol pumps across the country.

Sami Khan said that the government has been given 10 days to respond, after which the dealers’ core committee will convene a meeting to decide the future course of action.

He urged the government to give a written commitment for the 8 per cent margin even if it is implemented in instalments.

The association stressed that failure to meet dealers’ demands could impact fuel supply nationwide.