The federal government has decided not to change the retail prices of petrol and diesel for the week, choosing to increase its petroleum levy tax instead as global oil prices drop.
Citizens will not get any immediate price relief at the pumps despite a major drop in international crude oil rates. According to the official notification by the Oil and Gas Regulatory Authority (OGRA) and the Ministry of Energy’s Petroleum Division, the retail price for petrol stays fixed at Rs 299.50 per liter. Similarly, High-Speed Diesel (HSD) remains unchanged at Rs 311.47 per liter across the country.
Instead of passing the international price drops down to the public, the government adjusted its internal tax collection margins. The petroleum levy on high-speed diesel was raised by Rs 6.57, pushing the tax up to Rs 79.54 per liter. The levy on petrol saw a smaller increase of 39 paisas, bringing it to Rs 66.64 per liter. This policy choice allows the state to generate extra revenue for the national treasury.
Major Drops in Global Oil and Secondary Products
While primary transport fuel prices stayed flat, the government did cut the rates for secondary fuel products. Official data from the OGRA confirmed these specific price reductions:
- Kerosene Oil: Reduced by Rs 6.85 per liter, setting the new price at Rs 227.05 per liter.
- Aviation Jet Fuel (JP-1): Reduced by Rs 7.15 per liter, lowering the price to Rs 231.72 per liter.
These local decisions come right as global oil prices fell sharply to pre-war levels. Brent crude oil dropped down around $72 per barrel after a new maritime security agreement between the United States and Iran allowed oil tankers to safely cross the strategic Strait of Hormuz.
Local financial experts noted that keeping domestic fuel prices flat helps the state secure critical funds while letting oil marketing companies safely manage older, higher-priced inventories.
