The federal government has announced a reduction in the prices of petrol and high-speed diesel (HSD) by Rs2.04 and Rs6.47 per litre, respectively, for the next two weeks. Additionally, the prices of kerosene oil and light-diesel oil have been decreased by Rs6.05 and Rs9.01 per litre, respectively, to Rs204.98 and Rs180.45.
This price reduction was anticipated due to a drop in international market prices for petrol and HSD, but the depreciation of the rupee against the dollar has slightly offset the benefits for consumers. Despite reaching the maximum permissible limit of Rs60 per litre in petroleum development levy (PDL), the government has already exceeded its budget target for PDL collection for the current fiscal year. The government had previously increased petrol and HSD prices between August 15 and September 15, reaching a historic high until subsequent reductions in October.
The government is currently charging about Rs80 per litre in taxes on both petrol and HSD, along with a Rs60 per litre PDL on both products.