ISLAMABAD: Advancing the fortnightly revision by four days, the government on Friday reduced the petrol price by Re1 per litre with immediate effect for the next 18 days ending April 15 on the request of oil marketing companies to avoid any supply disruption on the eve of Eidul Fitr.

All other regulated product prices — high-speed, kerosene and light diesel — were left unchanged. However, the government also increased the petroleum levy on high octane blending component (HOBC) 97RON and 95RON by Rs20 per litre from Rs50 to equate with petrol and high-speed diesel at Rs70 per litre.

In a late-night announcement, the Ministry of Finance said the Oil and Gas Regulatory Authority (Ogra) had reviewed and adjusted prices for petroleum products in view of the fluctuations in the international market. The ex-depot petrol price was set at Rs254.63 per litre against Rs255.64, down by Re1 or 0.2pc. Petrol is mostly used in private transport, small vehicles, rickshaws, and two-wheelers, and it directly affects the budget of the middle and lower middle classes.

The ex-depot price of HSD was kept unchanged at Rs258.64 per litre. Most of the transport sector runs on HSD. Its price is considered inflationary as it is mainly used in heavy transport vehicles, trains and agricultural engines like trucks, buses, tractors, tube wells and threshers and particularly adds to the prices of vegetables and other eatables. Transport fares seldom come down despite lower diesel rates.

The kerosene and light diesel rates were kept unchanged at Rs168.12 and Rs153.34 per litre, respectively. The government charges about Rs86 per litre tax on petrol and HSD.

Govt keeps all other regulated POL products steady for next 18 days

Although the general sales tax (GST) is zero on all petroleum products. Yet, the government charges Rs70 per litre PDL on petrol, diesel and high-octane products that normally impact the masses. The government also charges about Rs16 per litre custom duty on petrol and HSD, irrespective of their local production or imports. In addition, about Rs17 per litre distribution and sale margins are going to oil companies and their dealers.

Earlier in the day, the Oil Companies Advisory Council (OCAC) — a cartel of oil companies and refineries had suspected a potential supply chain challenge on the routine fortnightly revision falling on Eid day. It said the price of petroleum products had decreased in the past three fortnights and was expected to reduce further on this revision.

“As a result, dealers limit their upliftment to avoid inventory losses. Consequently, a significant surge in orders is expected immediately after the price revision on April 1. However, given the Eid holidays, the availability of tank lorries will be limited, potentially causing delays in fuel deliveries and supply disruptions, including dry-outs at some retail outlets”, the OCAC said.

To mitigate this risk and ensure uninterrupted supply, the OCAC demanded that price revision be implemented earlier, effective March 29, to ease inventory losses and ensure supply chain integrity. “This adjustment will help balance the distribution load and ensure a smooth transition without impacting fuel availability at retail outlets”. The government accepted their demand.

Published in Dawn, March 29th, 2025