Anindita Chatterjee
Updated on: October 16, 2024 1:10 am GMT
In a move to ease the financial burden on the public, the federal government has announced a reduction in the prices of petrol and high-speed diesel. Starting midnight, petrol will see a decrease of Rs2.07 per litre, while the price of high-speed diesel will drop by Rs3.40. This change aims to provide much-needed relief to consumers amidst fluctuating global oil prices.
Details of the Price Cuts
According to a statement from state broadcaster PTV, the new petrol price is now set at Rs247.03 per litre, down from Rs249.10. The high-speed diesel price will be adjusted to Rs246.29, previously listed at Rs249.69. Other petroleum products are also seeing reductions:
- Kerosene oil will decrease by Rs3.57, with the new price at Rs154.90.
- Light diesel oil will see a less pronounced reduction of Rs1.03, bringing its cost to Rs140.90.
Context of Previous Reductions
This announcement follows a prior price adjustment made on September 15, where the government slashed petrol prices by Rs10 per litre and high-speed diesel by Rs13.06 per litre. Since early June, the cumulative reductions amount to substantial savings for consumers:
– Total petrol price reductions: Rs21.23 per litre
– Total diesel price reductions: Rs18.67 per litre
These adjustments reflect ongoing efforts by Prime Minister Shehbaz Sharif’s administration to pass lower fuel costs directly to the public during challenging economic times.
Government Taxation on Fuels
Despite these reductions, consumers still face significant taxation on these essential products. Currently, the government imposes approximately Rs76 per litre in taxes on both petrol and diesel. This includes a petroleum development levy of Rs60 per litre on top of the existing structure, even though the general sales tax on petroleum products is currently set to zero.
Public Response and Implications
The public response to the announcement has been generally positive, with many appreciating the government’s continued efforts to relieve financial pressures. As fuel prices are closely linked to various sectors of the economy, lower costs could translate into reduced transportation expenses, which might ultimately benefit consumers through lower prices on goods and services.
Experts suggest that while the reductions are a step in the right direction, ongoing monitoring of global oil prices and local economic conditions will be critical. There is hope that if global prices remain stable, future adjustments could further ease financial burdens on households and industries alike.
Conclusion
The recent drop in petrol and diesel prices is part of the government’s efforts to help people who are struggling with money. These new prices will start soon, and it will be interesting to see how they affect how people buy fuel and the economy in general in the next few weeks. The government is trying to manage fuel costs while aiming to make life a little easier for everyone.
