Business
Government cuts petrol, diesel prices by up to Rs4.79 per litre | The Express Tribune
The new prices will take effect from December 1 and remain in force for the next 15 days
People wait for their turn to get fuel at a petrol station in Peshawar on January 30, 2023. Photo: Reuters/ File
In a bid to provide relief to petroleum consumers, the government has reduced prices of petroleum products by up to Rs4.79 per litre for the next fortnight, according to a notification issued by the Petroleum Division late Sunday night.
The notification stated that the price adjustments were made based on recommendations from the Oil and Gas Regulatory Authority (OGRA).
“The new prices will take effect from December 1, 2025, and remain in force for the next 15 days,” the notification said. Petrol prices have been cut by 2 rupees per litre, bringing the price down from 265.45 rupees to 263.45 rupees per litre.
High-speed diesel prices have also been reduced by 4.79 rupees per litre. The new price for high-speed diesel is 279.65 rupees per litre, down from the previous 284.44 rupees per litre.
High-speed diesel is widely used in the transport and agriculture sectors. Therefore, a reduction in its price will have a large impact on the lives of the people. Petrol is used in motorbikes and cars, and Punjab province is its key user due to the ban on the use of indigenous gas in CNG stations.
Kerosene oil is used for cooking purposes mainly in the northern part of the country, where LPG is not available. The government is currently charging a higher rate of taxes, which includes the petroleum levy (PL). The consumers are currently paying Rs75.41 per litre petroleum levy (PL) and Rs2.50 per litre CSL on high-speed diesel.
The consumers are also paying Rs97.62 per litre petroleum levy (PL) and Rs2.50 per litre CSL on petrol. There is no sales tax on these products.
The federal government had increased the rate of petroleum levy to pocket the entire tax collection on petroleum products. The sales tax collection moves to provinces, and therefore, the government had reduced sales tax to zero to deprive the provinces of the sales tax collection.
The petroleum levy was also supposed to invest in the development of the oil sector, like building oil storage in the country. However, the governments have been using the collection to meet their current expenditures.