In response to escalating public demonstrations, the Pakistan government has announced a notable reduction in petrol and diesel prices. This decision, intended to offer relief just before the country’s Independence Day on August 14, comes despite the continued imposition of the petroleum development levy (PDL).
The announcement revealed that the price of petrol will decrease by Rs 8.47 per litre, falling from Rs 269.43 to Rs 260.96. Additionally, high-speed diesel (HSD) will see a reduction of Rs 6.70 per litre, bringing its new price to Rs 266.07 from Rs 272.77.
Despite this reduction, the PDL remains fixed at Rs 70 per litre. This levy, recently increased from Rs 60 to Rs 70 per litre in the federal budget for 2024-25, is aimed at bolstering government revenue amid volatile global fuel prices.
The announcement comes against a backdrop of significant unrest, with Jamaat-e-Islami (JI) planning further protests. JI leader Hafiz Naeem ur Rehman has indicated that the party may collaborate with trader groups to stage additional demonstrations, following the recent suspension of a two-week-long sit-in in Rawalpindi.
These protests had been temporarily halted after JI reached agreements with the government on several issues, including demands for reduced power tariffs and a review of contracts with independent power producers (IPPs), which have been criticized for contributing to high utility bills through large capacity payments. During a press conference on Tuesday, Naeem expressed concerns about the declining law and order situation and criticized the government’s handling of taxation and inflation.
Naeem emphasized the need for a broader tax base but condemned the government’s approach of increasing taxes on a financially strained population, particularly affecting traders and industrialists.
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