Moreover, the light diesel oil price was decreased by Rs2.78/ltr, bringing the new rate from Rs151.73 to Rs 148.95. The Kerosene oil price was decreased by Rs3.32 per litre to Rs161.66.

Last month, the ministry increased the petrol price by Rs3.72 per litre and high-speed diesel by Rs3.29/ltr.

International oil prices climbed about 2% on Friday to settle at a three-week high, on expectations that additional sanctions on Russia and Iran could tighten supplies and that lower interest rates in Europe and the US could boost fuel demand, Reuters reported.

Brent futures rose $1.08, or 1.5%, to settle at $74.49 a barrel. US West Texas Intermediate crude rose $1.27, or 1.8%, to settle at $71.29.

Pakistan’s fuel rates are determined by a pricing formula approved by the government.

In the fiscal year budget, the government increased the maximum petroleum levy from Rs60 to Rs70 per litre to collect Rs1.28 trillion. The target is nearly Rs150 billion higher than the previous year’s collection of Rs1.019 trillion and exceeds the budget target of Rs869 billion.

The government has imposed about Rs78 per litre tax on petrol and HSD.

It also levies around Rs8 per litre in customs duties on petrol and HSD, regardless of whether they are produced locally or imported. Oil companies and their dealers also receive approximately Rs17 per litre in distribution and sale margins.