On October 16, 2023, the interim government of Pakistan announced a reduction in petrol prices by Rs 40 per litre.
This decision was approved by the caretaker Prime Minister Anwaar-ul-Haq Kakar. The Ministry of Finance also revealed that the new price of petrol would be Rs 283.38 per litre.
In addition to the decrease in petrol prices, the government also reduced the price of high-speed diesel (HSD) by Rs 15 per litre and light diesel by Rs 19.59 per litre.
The price of kerosene oil was also cut by Rs 22.43 per litre, bringing it down to Rs 214.85 per litre. These revised prices were set to come into effect from midnight on October 16 and remain in place until October 31.
The government’s decision to lower fuel prices was influenced by changes in international commodity prices and improvements in the exchange rate.
Despite these reductions, the authorities increased the levy on diesel by Rs 5 to Rs 55 per litre to generate additional revenue and meet the tax collection target for the fiscal year.
The interim government led by Prime Minister Anwar-ul-Haq Kakar is not charging any general sales tax (GST) on all petroleum products. However, the rate of petroleum levy (PL) on petrol remains at Rs 60 per litre.