Govt Removes GST from Kerosene & Light Diesel Oil

GST or General Sales Tax that applies on all the petroleum based fuel sold in Pakistan will see a revision or outright removal, the government announced.

According to the announcement, GST on petrol, that was 14.5%, has been left unchanged. Meanwhile tax on Kerosene oil and Light Diesel Oil (LDO) has been waived off.

No GST on Kerosene And LDO

It should be mentioned that the government was collecting a 2% and 2.5% tax on kerosene and light diesel oil respectively. Products like High Speed Diesel (HSD) and regular petrol did not see major revisions.

Initially HSD had  31% GST on it, but it will now be decreased to 25.5%.

Increasing Fuel Prices

Earlier it was announced that the government was going to increase the prices of petroleum-based fuel items. Oil and Gas Regulatory Authority (OGRA) had recommended an increase in prices of fuel ranging from 0.5% to 16%.

The government could adjust the taxes on the fuels to compensate for the change in global crude oil prices. The final decision was to be made in a cabinet meeting, chaired by the Prime Minister Nawaz Sharif.

Read More: Petroleum Prices to Be Raised by Rs. 7 in January

A techie, Overwatch and Street Fighter enthusiast, and Editor at ProPakistani.


  • Fact is that in UAE high octane is for AED 1.8 these days (varies weekly) which is around Rs. 52 in an oil producing country. Petrol which is rated 92 is around Rs. 49 if converted into Pak rupees. Keeping that in view prices in Pakistan are reasonable, even if compared with neighboring India.

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