ISLAMABAD: The federal government has announced on Wednesday to slash the prices of petroleum products up to Rs7.01 per litre after adjusting the petroleum levy (PL) and general sales tax (GST) with effect from December 16 (today).

Rates of GST on all petroleum products are increased; however, PL’s rates are maintained at previous level (December 1-15).

According to the documents, the GST’s rate is increased to 4.77 percent from 1.63 percent on petrol. GST rate on the high speed diesel (HSD) is also increased to 9.08 percent from 7.37 percent. In addition, the GST on kerosene oil (SKO) and light speed diesel (LDO) are also revised upward.

GST rate on SKO is now 8.30 percent after increase from 8.19 percent and LDO rate is increased to 2.70 percent from 0.46 percent. In a statement, the Finance Division says, “The government has decided to revise the existing prices of petroleum products in view of the declining price trend of petroleum products in global market and transform the impact to the masses”.

Petroleum prices maintained as PM rejects OGRA's proposal

The PL rates are Rs13.62 per litre on petrol, Rs13.14 on HSD, Rs5.91 on SKO, and Rs3.66 per litre on LDO.

The prices of petrol and HSD have been reduced by Rs5 per litre to Rs140.82 and Rs137.62, respectively. The prices of SKO and LDO have been decreased by Rs7 per litre and Rs7.01 per litre to Rs109.53 and Rs107.06, respectively.

The Oil and Gas Regulatory Authority (OGRA) had recommended for a reduction from Rs9 up to Rs11 per litre in prices of petroleum products for the next 15 days.

The sources said that the government had bought oil between $68 to 74 per barrel in the last 15 days from the international market and relief or a reduction is around 10 percent in December as compared with November in global oil prices.

Prime Minister Imran Khan on December 1 had rejected the OGRA summary and maintained the petrol prices for the next 15 days.

Copyright Business Recorder, 2021