In the first two weeks of April, the Pakistani federal government reportedly intends to lower fuel costs by up to Rs. 14 per litre. This choice was made in response to the sharp decline in diesel prices worldwide, and it is anticipated to bring much-needed relief to the general population, particularly to farmers and low-income people.
High-speed diesel (HSD) prices are predicted to fall by Rs. 14.31 per litre, while gasoline costs are expected to fall by Rs. 3.51 per litre. The government intends to create a cross-subsidy programme for gasoline use, which will charge owners of luxury cars more and provide motorbike and small vehicle owners the same relief.
Kerosene oil, a necessary household fuel for cooking and heating in outlying areas, is anticipated to have a price fall of Rs. 13.46 per litre, while light diesel oil (LDO) could experience a price decline of Rs. 10.28 per litre.
Based on Pakistan State Oil’s supply costs, the government will allow a Rs. 6 per litre exchange rate adjustment for petrol and a Rs. 15 per litre adjustment for HSD. To comply with an IMF mandate, it must also increase the fuel tax on HSD by Rs. 5, to Rs. 50 per litre, beginning on April 1.
Overall, in an environment of high inflation, this action is anticipated to significantly relieve the public and boost the agriculture and transportation sectors. The price of petrol will drop from the present rate of Rs. 272 per litre to Rs. 268.49 per litre if the entire reduction is passed on to customers.
