The Government of Pakistan has announced that the price of petrol will remain unchanged for the next fortnight, but the rates of three other key petroleum products have been reduced by up to Rs10 per liter. The announcement was made by Finance Minister Ishaq Dar in a brief video statement on Sunday. He said that the price of high-speed diesel (HSD) had been cut by Rs5 per liter, whereas the rates of kerosene and light diesel oil (LDO) had been reduced by Rs10 per liter each.
The new prices of the three products are as follows: HSD at Rs288 per liter, kerosene at Rs176.07 per liter, and LDO at Rs164.68 per liter. The price of petrol will remain at Rs282 per liter.
Currently, there is no general sales tax on the four key petroleum products, as opposed to the normal GST rate of 17%. However, the government is charging a petroleum development levy of about Rs50 per liter and a customs duty of Rs18-22 per liter on petrol and high-speed diesel.
Petrol and HSD are the major revenue spinners for the government, with monthly sales of around 700,000 to 800,000 tonnes. This is in contrast to the monthly demand for kerosene and LDO, which is just 10,000 and 2,000 tonnes, respectively.
In the previous review on April 15, the government had increased the price of petrol by Rs10 per liter. The prices of diesel and LDO were kept unchanged, but the price of kerosene was raised by Rs5.78.
The government’s decision to keep the price of petrol unchanged is likely to come as a relief to the general public, who have been grappling with high fuel prices for some time. The reduction in the prices of HSD, kerosene, and LDO will also be welcomed by consumers, as it will lower their transportation costs and the cost of living in general.
The government’s decision to reduce the prices of three key petroleum products while keeping the price of petrol unchanged is a balanced one that takes into account the needs of both the public and the government. It is hoped that this move will provide some much-needed relief to the general public, who have been hit hard by rising fuel prices in recent times.
