ISLAMABAD: The government has announced a reduction in the price of high-speed diesel (HSD) by Rs3.05 per litre while keeping petrol prices unchanged for the fortnight ending December 31, 2024. This decision aligns with fluctuations in international oil prices over the past two weeks, as calculated by the Oil and Gas Regulatory Authority (Ogra).
The ex-depot price of HSD now stands at Rs255.38 per litre, down from Rs258.43. HSD is widely used in heavy transport vehicles, including trucks, buses, and trains, as well as in agriculture for tube-wells and threshers. Its price often influences inflation, affecting transport fares and food prices.
Petrol prices remain steady at Rs252.10 per litre, a key relief for users of private cars, motorcycles, and rickshaws, primarily from middle- and lower-income groups.
Kerosene oil saw a Rs3.32 reduction to Rs161.66 per litre, while light diesel oil dropped by Rs2.78 to Rs148.95 per litre.
Currently, the government imposes a petroleum development levy (PDL) of Rs60 per litre on petrol and HSD, along with Rs16 per litre in customs duties. Distribution and sale margins for oil companies and dealers amount to Rs17 per litre. However, GST remains at zero for all petroleum products.
Despite the cut in diesel prices, transport costs and fares often do not decrease, limiting the impact of the price reduction on consumers.
