The government may reduce petrol and high-speed diesel (HSD) prices by Rs. 17.21 and Rs. 41.78 per liter, respectively, following a global decline in oil rates, a media report states.
Oil Companies Advisory Council (OCAC) predicts that in the next bi-monthly review of the petroleum, oil, and lubricant (POL) rates, petrol price will decline to Rs. 231.53 per liter from the previous Rs. 248.74 per liter, which amounts to a decrease of Rs. 17.21 per liter.
Likewise, diesel price will drop to Rs. 234.76 per liter from Rs. 276.54 per liter, resulting in a drop of Rs. 41.78 per liter. Also, kerosene oil and light diesel oil (LDO) prices will plummet to Rs. 199.88 and Rs. 193.77 per liter, compared to Rs. 230.26 and Rs. 226.15 per liter respectively.
OCAC’s projection is based on the current government taxes on petroleum products. This implies that the rates could remain the same or decline marginally if the government increases the petroleum levy.
Presently, the government is collecting Rs. 10 per liter petroleum levy on petrol and Rs. 5 per liter on HSD, kerosene, and LDO since July 1, 2022, as per the International Monetary Fund’s (IMF) loan provision clause.
It is currently not collecting any general sales tax (GST) from the customers on petroleum products. The report claimed that the recent price hikes in petroleum products were due to a monumental increase in international oil rates.
On Tuesday, prime minister Shahbaz Sharif also sought a summary from the petroleum division, Ministry of Finance, and other relevant departments, proposing a reduction in fuel prices. He stated in the meeting that it is high time to pass on the benefit of global fuel price reduction to domestic consumers as well.
Via: The News
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