The federal government on Thursday night cut the price of gasoline at RS7.54 per liter while increasing the high speed diesel (HSD) in RS1.48 per liter for the next fortnight.
Widely used in motorcycles, rickshaws and private vehicles, gasoline has a direct impact on the budgets of average and low income households. HSD feeds heavy transport, agricultural machinery and trains. Its price is considered highly inflationary, influencing the cost of food and other essential goods.
In a press release issued today, the Finance Division declared that the price of gasoline was established in RS264.61 per liter and that of HSD in RS285.83 per liter.
He added that he decided these new rates “after a review of the prevailing international market trends” and about the recommendations of the Petroleum and Gas Regulatory Authority (OGRA) and the relevant ministries.
The sources had previously said that after four consecutive walks, gasoline and diesel prices were expected to decrease in approximately RS9 and RS3.50 per liter, due to the lowest international prices of oil and the reduction of import premiums.
Based on the predominant tax rates, it was estimated that the ex-sports of gasoline decreases around RS9 per liter (3.3 percent), while HSD was expected to see a reduction of RS3.50 per liter (1.3pc), depending on the final cost calculations.
According to informed sources, global oil prices softened slightly during the last fifteen days, while the import premium on gasoline fell into almost a third, of approximately $ 9.70 to $ 6.75 per barrel, as regional tensions decreased.
Currently, the Government is collecting around RS98 per liter in gasoline and diesel through several levies, despite maintaining a zero general sales tax rate (GST) in all oil products. This includes RS77.01 per liter in Diesel and RS78.02 per liter in gasoline and high octane products such as oil tax and climate support (CSL), of which RS2.25 per liter is attributed to CSL Solo.
In addition, RS20-21 per liter is being charged as a duty of customs in both fuels, regardless of whether they are imported or refined locally. The distribution and margins of the concessionaire represent another RS17 per liter.
Gasoline and HSD remain the main sources of government income from the government, with monthly sales combined of around 700,000-800,000 tons. On the contrary, the demand for kerosene is only 10,000 tons per month. The Government collected RS1,161 billion through Levy of Petroleum in 2024-25 and projects a 27PC increase, reaching RS1.470TT, in the current fiscal year.
OGRA cuts the price of LPG for RS17.7 per kg
Previously, Ogra reduced the price of liquefied oil gas (LPG) at RS17.7 per kilogram.
Last month, Ogra notified a decrease in the price of LPG at RS7.51 per kg or 3.1 percent for July. The new price for the 11.8 kg cylinder was RS2,750.6 for July, against RS2,838.31 for June. He said that the price of LPG producer was linked to Saudi Aramco-CP and a US dollar change rate.
In a notification of the regulator today, available with Dawn.comOGRA established the new consumer price for a 11.8 kg cylinder to RS2,541.36 for August, compared to RS2,750.6 last month. The maximum consumer price for LPG per kg was set at RS215.37.
These prices will enter into force on August 1 (Friday).
Prices “will be regulated as the maximum LPG price at all levels of the supply chain for the indigenous and imported LPG,” Ogra said.
The notification also showed that the new price of the producer for a cylinder of 11.8 kg stood at RS2,054.02.
This is the third consecutive month where LPG prices have fallen, with a 11.8 kg cylinder that costs RS2,892.91 in May, RS2,838.31 in June and RS2,750.6 in July.
Earlier this month, a parliamentary panel expressed concern about the “poor regulatory environment” in the oil sector, observing that the lives were in danger after an official dissemination that almost half of a total of 2,000 coils that handle LPG have not registered anywhere.
From an estimated 2,000 pressure in operation, only 800 are registered in the Explosives Department and only 247 have licenses issued by OGRA. This points to a significant supervision period, the participants observed.
