Big drop in fuel rates a silver lining for inflation-hit masses

For the second fortnight in a row, the Caretaker Prime Minister Anwaarul Haq Kakar’s government reduced petrol and high-speed diesel (HSD) prices for the next 16 days, ending Oct 31, as a result of decline in the international market and an appreciation in the rupee’s value. The petrol price was cut by Rs40 per litre, and HSD lowered by Rs15 per litre. As a result, the ex-depot price of petrol fell to about Rs284 per litre. However, the government raised the petroleum levy on HSD by Rs5, reaching a historic high of Rs55 per litre, just below the Rs60 maximum permissible limit under the law. The government has to collect about Rs869bn as petroleum levy on petroleum products during the current fiscal year under the budget target and commitments made with the International Monetary Fund (IMF). The Ministry of Finance announced the price decrease late at night following clearance from the caretaker prime minister.