The government on Friday notified 50 percent reduction in oil price hike after developing consensus with coalition partner Muttahida Qaumi Movement. "After recent reduction, the government will have to bear a subsidy of Rs 9 billion during March," sources said.
Finance Minister Dr Abdul Hafeez Shaikh had announced reduction by 50 percent in recent increase in oil prices after negotiations with MQM leadership in Karachi late Thursday night. The price of High Speed Diesel (HSD) has been reduced by Rs 3.99 per litre, HOBC by Rs 4.29 per litre, kerosene oil by Rs 3.50 per litre, LDO by Rs 3.30 per litre and petrol by 3.61 per litre. The new prices of petroleum products stand at; HSD Rs 82.22 per litre, HOBC Rs 90.96 per litre, kerosene oil Rs 74.45 per litre, LDO Rs 69.91 per litre and petrol Rs 76.58 per litre.
The Petroleum Levy (PL) on petrol has been reduced from Rs 6.25 per litre to Rs 3.16 per litre, HOBC from Rs 9.80 per litre to Rs 6.13 per litre. The government was earlier charging Rs 0.25 per litre PL on kerosene oil but now it will give subsidy of Rs 2.74 per litre on it and Rs 2.82 per litre on LDO.