ISLAMABAD: The government on Friday reduced the prices of petrol and high-speed diesel by Rs1.97 per litre each with immediate effect for the week ending July 10, as it passed on part of the impact of lower global prices during the last week.

The ex-depot price of highspeed diesel was set at Rs309.50per litre for the next week, down from Rs311.47.

Diesel price has come down from a peak of Rs520.35 recorded on April 3. Its price had started rising from Rs281 per litre after the US and Israel attacked Iran on Feb 28. HSD is considered the most inflationary fuel because of its extensive use in freight transportation.

The ex-depot rate of petrol was fixed at Rs297.53 per litre for the next week against Rs299.50 at present.

Petrol prices had peaked at Rs458.41 on April 3 after beginning its upward journey from Rs266 in the first week of March. Since then, petrol has seen downward revisions, with a cumulative reduction of about Rs109 per litre.

The government slightly increased the petroleum levy on both products; otherwise, petrol and diesel prices would have dropped by about Rs11 and Rs4 per litre, respectively.

Under an IMF condition, the government doubled the climate support levy to Rs5 per litre with effect from July 1, while reducing the petroleum levy by an equal amount.

The petroleum levy on diesel currently stands at about Rs80 per litre.

The petroleum levy on petrol now stands at about Rs70 per litre, in addition to the Rs5 climate levy.

The government is currently charging about Rs101 per litre on HSD in the form of Rs16 per litre customs duty, petroleum levy, climate support levy and inland freight equalisation margin. The total tax on petrol amounts to Rs95 per litre, including Rs20 per litre customs duty in addition to petroleum levy and climate levy. The government is also charging about Rs21 per litre as petroleum levy on kerosene and about Rs16 per litre on light diesel oil.