Finance Minister Ishaq Dar on Tuesday announced a reduction of Rs 5 per litre in the price of petrol in much-needed relief to the inflation-stricken people of the country.
Announcing the new prices, Dar said that petrol price would be decreased from Rs272 to Rs267.
However, despite a drop in diesel prices in the international market, the finance minister said the government has decided to keep the price of high speed diesel (HSD) unchanged for the next fortnight at Rs.280 per litre.
Petroleum Products Prices:
March 1 to 15 , 2023:
High Speed Diesel- with No change Rs 280 per litre
MS Petrol —with Rs 5 reduction,Rs 267 per litre
Kerosene Oil – with Rs 15 reduction, Rs 187.73 per litre
Light Diesel Oil -with Rs 12 reduction, Rs 184.68 per litre
— Ishaq Dar (@MIshaqDar50) February 28, 2023
The price of kerosene oil has been fixed at Rs187.73 from Rs202.73 following a reduction of by Rs15 per litre, while light diesel oil (LDO) will be available at Rs184.68 after a reduction of Rs12 per litre from Rs.196.69.
The new prices would come into effect from midnight on Tuesday.
The drop in petrol price comes as a relief to consumers, but the government’s decision to keep diesel prices unchanged is likely to disappoint the country’s oil industry, which was expecting a reduction of over Rs20 per litre as the price of diesel has gone down in the international market.
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Sources had earlier told The Express Tribune that if the government increases the general sales tax (GST) on diesel, then it may keep the price unchanged for the first half of March by adjusting the petroleum development levy and the supply cost incurred by Pakistan State Oil (PSO).
The government has already decided to increase the petroleum levy on diesel by Rs5 per litre from the beginning of March and by another Rs5 per litre from April 1 to bridge revenue shortfall in the ongoing financial year.
At present, the petroleum levy on high-speed diesel is Rs40 per litre, which will go up to Rs50 per litre, as agreed with the International Monetary Fund (IMF) under its loan programme, sources told The Express Tribune.