Prime Minister Shehbaz Sharif announced a ‘big relief’ for the public on Saturday night and approved a reduction in the prices of petrol and high speed diesel (HSD) by Rs 1.86 and Rs 3.23 respectively for the next fortnight.
A statement issued by Pakistan’s state TV Pakistan Television (PTV) said that the price of petrol will now be Rs 259.1 per liter while HSD will be Rs 262.75 per litre.
The new prices of petroleum products came into effect from 12 midnight on Saturday and Sunday and will continue for the next 15 days.
According to the statement, the price of kerosene has also been reduced by two rupees 15 paise to Rs 169.62 per liter, while the price of light diesel oil has been reduced by two rupees 97 paise to Rs 154.05 per liter.
Petrol and HSD prices were earlier estimated to fall by around Rs 5-6 per liter mainly due to the drop in prices in the international market for the next 15 days starting September 1.
Prime Minister Shehbaz Sharif announced a big relief to the people, reducing the prices of petroleum products pic.twitter.com/b1ZiamYe7j
— PTV News (@PTVNewsOfficial) August 31, 2024
According to media reports, the prices of petrol and HSD in the international market have decreased from two dollars to $2.30 per barrel in the last fortnight.
Officials said that the average price of petrol in the international market has decreased to around $80.40 per barrel from around $82.5 per barrel. During the last 15 days, the price of HSD has decreased from 90.3 dollars to about 88 dollars per barrel.
In the current 15-day period, the import premium on petrol has declined by around 50 cents to $8.50 per barrel, while on HSD it has remained unchanged at $5 per barrel.
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On the other hand, the local currency appreciated by 25 cents against the US dollar during the 15-week period.
In the Finance Bill, the government has raised the ceiling of petroleum levy to Rs 70 per liter to collect Rs 1.28 trillion in the next financial year, as against the collection of Rs 1.019 trillion in the previous financial year. 150 billion rupees more.
At present, the government is charging a tax of around Rs 78 per liter on petrol and HSD. Although the general sales tax on all petroleum products is nil, the government levies a petroleum development levy of Rs 60 per liter on both products, affecting the general public.
The government also levies a custom duty of around Rs 18 per liter on petrol and HSD, whether locally produced or imported.
Apart from this, around Rs 17 per liter distribution and sale margin is going to the oil companies and their dealers.
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2024-09-02 03:38:11