Govt reduces petrol price by Rs4.26 per litre to ‘provide relief’

Published: July 7, 2018
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Reduction in prices of petroleum products will be effective from Saturday midnight. PHOTO: FILE

Reduction in prices of petroleum products will be effective from Saturday midnight. PHOTO: FILE

The federal government has decided to reduce the prices of petroleum products by up to Rs6.37 per litre in order to provide relief to the general public.

According to a notification issued by the Ministry of Finance on Saturday, the petrol price has been reduced by Rs4.26 per litre and the new price will be Rs95.24 per litre, high-speed diesel by Rs6.37 to Rs112.94, kerosene by Rs3.74 to Rs83.96 while price of light diesel has been reduced by Rs5.54 per litre and its new rate is Rs75.37.

The reduction in the prices of petroleum products will be effective from midnight Saturday, the notification read.

Oil prices linked to value of rupee, govt tells SC

The caretaker government had on July 1 increased the price of petrol by Rs7.54 to Rs99.50 per litre, diesel by Rs14 to Rs119.3 and kerosene by Rs3.36 to Rs87.7, besides raising the rates of other products.

Taking suo motu notice on the exorbitant and unreasonable tax, cess, duty and fee on petroleum products, the Supreme Court had asked the stakeholders to work out a comprehensive plan and come up with suggestions on how much tax can be curtailed to keep the prices at a reasonable level.

Meawhile, Federal Energy Minister Syed Ali Zafar, in a statement, said on Saturday that the federal cabinet had decided that sales tax would be reduced from 17 to 12 per cent on motor spirit and kerosene oil, from 31 to 24 per cent on high speed diesel and from 17 to 9 per cent on light diesel oil.

CJP seeks explanation over petroleum price hike

“The caretaker government is fully aware of the problems being faced by the people and is determined to reduce their sufferings despite the present financial constraints,” said the minister.

“The federal government is confident that the relief in petroleum prices will not only provide much needed respite to the masses but also reduce the cost of production and give a boost to economic activity,” Zafar added.

As a result of the reduction in petroleum prices, the government would sustain an estimated loss in revenue to the tune of Rs10 billion, he said.

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Reader Comments (5)

  • Parvez
    Jul 8, 2018 - 12:47AM

    So they have reduced prices on an imported commodity and then they will go to IMF to borrow dollars to finance these imports? Where is the logic in this?! Our situation is dire but these people don’t seem to care about it.Recommend

  • BrainBro
    Jul 8, 2018 - 12:48AM

    Saudi or Qatar should help out with free fuel. Bros before dollars.Recommend

  • dubious
    Jul 8, 2018 - 6:58AM

    Lame attempt by bankrupt govt to buy votes b4 election. Classic example why govt officials should not be in charge of setting prices. Recommend

  • Abdul Hameed
    Jul 8, 2018 - 12:40PM

    Federal Govt is just dodging CJ/////still prices are too High///CJ must take notice!!!!Recommend

  • Kfaisal
    Jul 8, 2018 - 1:48PM

    Wrong decision. Government needs taxesRecommend

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