The Government of Pakistan has announced that petrol and diesel prices will remain unchanged for the next fortnight, starting March 16, 2025. This decision, confirmed by the Finance Division, comes amid economic fluctuations and global oil market uncertainties, providing temporary relief to consumers.
Fuel Prices Remain Steady
As per the official notification, the prices of key petroleum products will stay as follows:
• Petrol: Rs. 255.63 per litre
• High-Speed Diesel (HSD): Rs. 258.64 per litre
• Kerosene Oil: Rs. 168.12 per litre
• Light Diesel Oil (LDO): Rs. 153.34 per litre
This stability ensures that no immediate financial burden is passed on to consumers, despite earlier speculations suggesting a possible price cut.
Expected Price Reduction Did Not Materialize
Media reports previously hinted at a significant decrease of up to Rs. 15 per litre in petrol prices, along with reductions of Rs. 8 per litre for HSD and Rs. 10 per litre for kerosene oil. However, the government opted to maintain current rates, citing fiscal considerations and revenue needs.
Taxation Impact on Fuel Prices
Despite the zero-rated General Sales Tax (GST) on petroleum products, the government still imposes Rs. 76 per litre in taxes on petrol and diesel. This includes:
• Petroleum Development Levy (PDL): Rs. 60 per litre (which can be legally increased to Rs. 70 per litre)
• Customs Duty: Rs. 16 per litre
• Distribution & Dealer Margins: Rs. 17 per litre
The government’s taxation policies play a crucial role in determining whether global price reductions benefit the public or are absorbed to meet fiscal targets.
Looking Ahead
As oil prices fluctuate globally, Pakistani consumers remain hopeful for a price drop in the next review. However, government taxation policies and economic considerations will ultimately decide whether this relief is passed on to the people.
