The Pakistani Government has reduced the prices of petroleum products by 40 rupees

Pakistan's caretaker government slashes petrol prices by Rs40 per liter, providing much-needed relief to people amid economic crisis

The federal caretaker government of Pakistan has slashed petrol prices by Rs40 per liter, bringing them down from Rs323.38 to Rs283.38 per liter, effective October 16. This reduction is in line with fluctuations in global oil prices and the strengthening of the Pakistani rupee against the US dollar.

Petrol is the most widely used fuel in Pakistan, and its price reduction is expected to provide much-needed relief to people who have been struggling with a challenging economic crisis since mid-2022. The government has also reduced the price of high-speed diesel (HSD) by Rs15 per liter, bringing it down from Rs318.18 to Rs303.18 per liter. HSD is primarily used in the agriculture and transport sectors, and this price reduction may help alleviate inflation to some extent.

However, the government has increased the petroleum levy by Rs5 per liter on HSD, raising it from Rs50 to Rs55 per liter. A petroleum levy of Rs60 per liter is charged on petrol. The petroleum levy is a tax on petroleum products that the government collects to finance its development projects.

The reduction in petrol and HSD prices is a welcome move by the government. It is expected to help people cope with the rising cost of living and boost economic activity.