ISLAMABAD: Fuel Prices in Pakistan may see a significant cut next week, with diesel expected to post the sharpest decline, according to industry sources.
Authorities prepare a reduction of up to Rs11 per litre in petroleum products, officials said.
Sources in the Petroleum Division said authorities have completed preliminary calculations for the price reduction.
Petrol prices are expected to fall by Rs0.36 per litre. Diesel prices may drop sharply by Rs11.85 per litre, the sources said.
Kerosene is projected to become cheaper by Rs11.70 per litre. Light diesel oil may see a reduction of Rs10.01 per litre.
The Oil and Gas Regulatory Authority (OGRA) will submit a summary of the revised prices on December 15. The Petroleum Division will issue a notification after approval from Prime Minister Shehbaz Sharif, the sources said.
High Fuel Taxes
The government currently levies heavy taxes on fuel prices.
Taxes on petrol stand at 37 per cent, amounting to Rs96.28 per litre. Diesel carries a tax burden of 34 per cent, or Rs94.92 per litre.
Dealers Warn of Closures
Petroleum dealers have rejected the government’s proposed revision of dealer margins and warned of nationwide pump closures.
The Pakistan Petroleum Dealers’ Association (PPDA) said operating costs have surged and demanded an 8 per cent margin, up from the current 3.12 per cent.
PPDA Chairman Abdul Sami Khan said dealers would shut pumps if the government fails to meet the demand.
He said the association has given the government 10 days to respond. The PPDA’s core committee will then decide on further action.
Khan urged the government to provide a written commitment, even if the higher margin is implemented in phases.
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The association warned that failure to resolve the issue could disrupt fuel supplies across the country.
