Due to fluctuations in global oil prices, the federal government has announced a reduction in the price of high-speed diesel (HSD) by Rs5 per litre effective Monday, May 1, 2023.

HSD is commonly used in transport and agriculture sectors, and this decrease in price will have a positive impact on farmers who are already facing higher oil prices during the Kharif crop season.

The government charges a maximum rate of petroleum levy (PL) up to Rs50 per litre on petrol, high-speed diesel, and HOBC to boost revenue. However, it passed on the relief to consumers by reducing the price of HSD.

Following the fresh price cut, diesel will be sold at Rs288 per litre compared to the earlier price of Rs293.

While it was expected that the government would also reduce the price of petrol by Rs3.86 per litre, the existing price of petrol at Rs282 per litre has been maintained, denying relief to consumers.

Read more: Govt likely to cut petrol price by Rs3.86 per litre

Petrol is used by motorbikes and cars and is an alternative to CNG. Due to gas shortage and higher prices of LNG, CNG retail outlets had shut down during the recent winter season, forcing consumers in Punjab to depend on expensive petrol use for motorbikes and cars.

Furthermore, the government has also reduced the price of kerosene oil by Rs10 per litre.

Kerosene oil is mainly used in remote areas of Pakistan for cooking purposes, especially in the northern part of the country where LPG was not available.

The Pakistan Army is also a key user of kerosene oil.

The government has also decreased the price of light diesel oil (LDO) by Rs10 per litre as well, and it will now be sold at Rs164.68 per litre compared to the old price of Rs174.68 per litre. LDO is mainly used in the industry.

The prices are based on Platts, and the dollar had witnessed a decline of Rs2.57 from 286.66 to Rs 284.09 during the last fortnight.

Overall, these price reductions are expected to bring relief to consumers and farmers, who have been struggling with high oil prices in recent times.