Government Reduces Petrol, Diesel Prices

On Wednesday federal govt, Instead of passing complete relief to the people, only decreased the prices of petrol and high speed diesel by Rs5 because of the reducing price trend of petroleum goods across the world.

The reduction in prices of petroleum goods by Rs8 to 10 per liter had been proposed by the Oil and Gas Regulatory Authority (Ogra). Rs10.77 and Rs7.73 per liter reduction in the prices of petrol and high-speed diesel (HSD) had been proposed by the Oil and Gas Regulatory Authority.

The govt, however, reduced the price of petrol and HSD by Rs5, light diesel oil (LDO) by Rs7.1, and kerosene oil by Rs7 per liter. 

The new price of petrol has reduced to Rs140.82, kerosene oil to Rs109.53, HSD to 137.62, and LDO to Rs107.06 per liter, after the reduction of prices. Petrol is mostly used in motorbikes and cars. Imported gas was already used by consumers in Punjab. The gas supply to CNG stations in Balochistan and Sindh has been suspended by the Sui Southern Gas Company (SSGC).

In the transport and farm sectors, HSD has been widely used. In remote areas, kerosene oil is used for cooking where LPG is unobtainable. Light diesel oil (LOD) is used in the industries. The GST of petrol has been increased by Rs4.07 per liter from Rs2.34 per liter (1.63%) to Rs6.41 (4.77%), by the government.

The dealer margin on petrol has also been increased by Rs0.99 per liter. And the oil marketing companies (OMC) margin has been raised by Rs0.71 per liter. HSD price has been decreased by Rs5 per liter and remaining adjusted in the GST and petroleum margin by the government. And GST on HSD increased by Rs1.19 per liter from Rs10.49 per liter (7.37%) to Rs11.68 per liter (9.08%).

Similarly, the HSD margin for dealers has been hiked by Rs0.83 per liter. And the OMC margin has been raised by Rs0.71 per liter. Dr. Shahbaz Gill Special Assistant to the Prime Minister for Political Communication had tweeted just before the announcement that, the public would receive good news soon regarding petrol prices.

As per the Finance Division handout because of the declining price of petroleum goods in the global market and transforming the impact to the masses the govt had decided to revise the current prices. The prices are updated from Thursday.

Finance and Revenue Adviser to the Prime Minister, Mr. Shaukat Tarin earlier this week, had told that prices of petrol in Pakistan would also be reduced, due to the decrease in prices in the global market. It has been observed that prices of petroleum in Pakistan had reached an all-time high with petrol being sold at Rs146 per liter.