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Government Absorbs Billions In Subsidies To Maintain Current Fuel Prices

Government Absorbs Billions In Subsidies To Maintain Current Fuel Prices

Prime Minister Shehbaz Sharif officially announced that petrol prices will remain at 321.17 rupees per liter, while diesel stays at 335.86 rupees. This decision aims to protect the public from global inflationary pressures.

Sources reveal that taxes currently account for 121.77 rupees of the total petrol price per liter. This means that 38 percent of the cost paid by consumers consists of various government duties.

For diesel, the tax component stands at 73.42 rupees per liter, representing 22 percent of the price. These charges include custom duties, petroleum development levies, and newly introduced climate support levies.

The government reportedly prevented a massive hike of 49.63 rupees for petrol and 75.05 rupees for diesel. By absorbing these costs through price differential claims, the administration hopes to stabilize the economy.

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