Petrol Prices Likely to Decrease by Up to Rs 15 Per Litre

Wajahat

14 Mar 2025

178

Petrol Prices Likely to Decrease by Up to Rs 15 Per Litre

Consumers may soon experience a notable decline in fuel prices as the cost of petrol is projected to decrease by up to Rs. 15 per litre for the upcoming fortnight ending March 31. The anticipated reduction follows recent global oil price fluctuations and modifications in import premiums.

Government’s Role in Price Adjustments

While a drop in fuel costs is expected, the actual relief depends on the government’s taxation strategy. Authorities might consider adjusting levies to offset revenue shortfalls. There is speculation that a potential increase in the petroleum levy or the introduction of a carbon tax could help secure an additional $1 billion financing from the International Monetary Fund (IMF) for climate adaptation initiatives. The final pricing decision is scheduled for March 15.

Expected Fuel Price Reductions

Recent global market trends suggest the following changes in fuel prices:

Fuel Type	Expected Price Reduction (Rs. per litre)
Petrol	Up to 15
High-Speed Diesel (HSD)	8
Kerosene	10
Light Diesel Oil	7

The decline in Brent crude prices by $3 per barrel over the last ten days has significantly influenced these projected price cuts.

Breakdown of Fuel Pricing & Taxes

Despite a zero-rated General Sales Tax (GST), the government continues to impose multiple charges on fuel, significantly impacting retail prices:

Tax Component	Amount (Rs. per litre)
Petroleum Development Levy (PDL)	60 (can rise to 70)
Customs Duty	16
Distribution & Dealer Margins	17

Will Consumers Experience Full Benefits?

The projected reduction offers a financial reprieve for consumers, but the extent of savings will depend on whether the government passes on the full benefit or adjusts tax structures to support fiscal objectives. As fuel prices remain a crucial factor in inflation trends, all eyes are on the March 15 decision.

Petrol Price Drop Fuel Price Reduction Petrol Price Pakistan Oil Price Update Brent Crude Price Fuel Cost Decline IMF and Fuel Tax Petroleum Levy 2024 March Petrol Price Global Oil Market

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