Higher Freight Margins Keep Fuel Costs Elevated

Consumers expecting fuel price relief have faced disappointment as the government raised freight margins on petroleum products, despite a decline in global oil rates.

According to official data, the freight margin on high-speed diesel has now been fixed at Rs6.19 per litre, including a 32 paisa increase in the extra charge.

On petrol, the freight margin has been revised upward by Rs2.04 per litre, pushing the total margin to Rs8.69 per litre, adding to the overall burden.

For kerosene, the freight margin has been revised to Rs7.83 per litre, following a minor upward adjustment of 2 paisa per litre.

The government continues to impose heavy taxes, including a Petroleum Levy of Rs78.02 per litre on petrol and Rs77.01 per litre on diesel, in addition to a carbon levy of Rs2.50.

Margins for distribution and retail remain considerable, with Rs7.87 per litre allocated as distributor margin and Rs8.64 per litre fixed as dealer margin on both major fuels.

Read More: Oil Prices Go UP Rs 4.07 per Liter

Meanwhile, the latest ex-refinery prices have been announced at Rs162.96 per litre for petrol and Rs174.28 per litre for high-speed diesel.

Economic experts believe domestic consumers are being denied actual fuel price relief, as international oil rates have softened while local charges continue to climb.

earlier today the federal government increased fuel prices, raising petrol by Rs4.07 to Rs268.68 per litre and diesel by Rs4.04 to Rs276.81.

The Ministry of Finance confirmed through a notification that the revised petrol and diesel prices have taken effect immediately across the entire country.

The Oil and Gas Regulatory Authority reduced liquefied petroleum gas prices for October, cutting a domestic cylinder by Rs79.14 to Rs2,448.

OGRA stated that per-kilogram LPG prices dropped by Rs6.71 to Rs207.48, marking the second straight monthly relief for households struggling with higher energy costs.