ISLAMABAD: Federal government on Sunday has announced to reduce the prices of motor spirit (petrol) and high speed diesel (HSD) for second half of November in fortnightly review of petroleum prices.
In a statement, Finance Division states to reduce the price of petrol by Rs1.71 per litre and Rs1.79 per litre on HSD. The prices of kerosene oil (SKO) and light diesel oil (LDO) have been kept unchanged.
Finance Division has reduced the prices of petroleum products for second fortnightly by reducing the rate of petroleum levy. The rate of general sale tax has been kept at standard rate at 17 percent.
After the reduction of prices, the rate of petrol will go down to Rs100.69 per litre from Rs102.40 per litre, HSD price will reduce to Rs101.43 per litre from Rs103.22 per litre. The prices of SKO will be Rs65.29 per litre and LDO Rs62.86 per litre. Sources said that petroleum levy rate has reduced from Rs30 per litre to Rs28.29 per litre on petrol, the petroleum levy on HSD also reduced from Rs29 to Rs27.21 per litre.
The government collected Rs136.3 billion petroleum levy in first quarter (July-September) financial year 2020-21 against the budgeted target of Rs450 billion. Oil and Gas Regulatory Authority (OGRA) computed the ex-depot prices of petroleum products at last notified rates of petroleum levy and GST on petroleum products.
An official of Federal Board of Revenue (FBR) told Business Recorder that the reduction in POL products would have negative impact of estimated Rs1.25 billion in second half of November (16-30).
The per litre GST on petrol has reduced from Rs 14.88 per litre to Rs 14.63 per litre and ex-refinery prices of petrol has decreased from Rs 47.53 per litre to Rs 46.07 per litre.
Copyright Business Recorder, 2020
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