Fuel cuts fail to offset earlier hikes as diesel stays Rs27 higher

Despite recent cuts in petroleum prices, consumers across Pakistan continue to pay significantly higher rates for petrol and high-speed diesel compared to five

Despite recent cuts in petroleum prices, consumers across Pakistan continue to pay significantly higher rates for petrol and high-speed diesel compared to five weeks ago. The relief provided through the latest reductions has not fully offset the sharp increases imposed earlier, while the burden of petroleum levy remains in place.

Official data shows that during the last 36 days, the government revised fuel prices six times. These revisions included three increases and three reductions in the prices of petrol and high-speed diesel. Although the recent decreases brought some relief, fuel prices remain substantially above their previous levels.

According to the figures, the price of high-speed diesel was increased by a cumulative Rs61.16 per litre over the period. The government later announced reductions totaling Rs33.80 per litre. However, even after these cuts, diesel is still Rs27.36 per litre more expensive than it was five weeks ago.

The continued increase in fuel costs has affected a wide range of sectors. High-speed diesel is widely used in transportation, agriculture, and industrial activities. As a result, elevated diesel prices have increased operating costs for transporters, farmers, and businesses, contributing to broader inflationary pressures.

Consumers have also seen limited benefits from the recent reductions because the petroleum levy remains at elevated levels. Many observers argue that the levy has absorbed a significant portion of the relief that could otherwise have been passed on to the public.

Economic analysts say the frequent adjustments in fuel prices reflect changing international oil market conditions. However, they note that domestic taxes and levies continue to play a major role in determining the final prices paid by consumers.

With fuel prices still considerably higher than they were at the end of April, households and businesses remain under pressure. Rising transportation and production costs are expected to continue influencing the prices of essential goods and services in the coming weeks.