The federal government has updated the prices of key petroleum products for the upcoming 15 days. A notification released by the Petroleum Division on Sunday indicated that the adjusted rates will take effect from December 1 and remain valid until December 15.
As stated in the notification, the price adjustments occurred after the Oil and Gas Regulatory Authority (OGRA) provided its assessments for the new cycle. The notification confirmed that the government accepted the Authority’s recommendations and published the new rates.
The price of petrol is now set at 263.45 rupees per litre following a decrease of Rs2 per litre, down from the previous rate of 265.45 rupees. High-speed diesel price has been lowered by Rs4.79 per litre, now priced at 279.65 rupees per litre, a reduction from 284.44 rupees.
High-speed diesel serves the transportation and agricultural sectors, and variations in its price influence the distribution of goods and agricultural operations. Petrol fuels motorbikes and cars, with Punjab being the main consumer due to restrictions on local gas usage at CNG stations in the region.
The notification emphasized that the taxes on petroleum products remain unchanged. Currently, the petroleum levy on high-speed diesel stands at Rs75.41 per litre, with an additional charge of Rs2.50 per litre as CSL. Petrol has a petroleum levy of Rs97.62 per litre alongside the same CSL rate. There is no sales tax applied to petrol, high-speed diesel, kerosene, or other petroleum products.
The federal government previously raised the petroleum levy to ensure full tax collection on petroleum products. The sales tax from petroleum products is shared with the provinces, and the federal government reduced the rate to zero to retain overall revenue at the center.
The petroleum levy was established to facilitate investment in the oil supply chain, including projects for storage. Successive administrations have redirected levy funds to cover operational expenses, while the funding for specific sector projects has not changed.
The latest price adjustments conclude the most recent fortnightly cycle and adhere to the standard review process, where OGRA provides updated calculations reflecting international prices, exchange rate changes, and local modifications.