Petrol, diesel prices reduced by Rs2 each

Rates slashed despite OGRA's recommendation for price hike

ISLAMABAD: The government on Friday reduced prices of petrol and high-speed diesel (HSD) by Rs2 per litre each for December 2018.

With the revision, the price of petrol has gone down from Rs97.83 to Rs95.83 per litre. The demand for petrol has increased in recent years as consumption of compressed natural gas (CNG), which is an alternative fuel, has shrunk because of the ban on supply of locally produced natural gas to CNG outlets in Punjab.

The CNG filling stations are now relying on imported liquefied natural gas (LNG).

The price of HSD has also been pushed down by Rs2, which will now cost Rs110.94 per litre compared to Rs112.94 for November 2018. HSD is widely used in transport vehicles and agriculture sector.

Similarly, according to Finance Minister Asad Umar who was speaking at a press conference, the government has slashed kerosene price by Rs3 to Rs83.50 per litre. Kerosene oil is used for cooking purposes in remote areas like northern parts of the country where liquefied petroleum gas (LPG) is not readily available.



The government has also slashed the price of light diesel oil (LDO), which went down by Rs5 to Rs77.44 per litre. This oil is used in the industry.

Earlier, the Oil and Gas Regulatory Authority (Ogra) had recommended an upward revision in prices of petroleum products by adding 17% general sales tax to fuel prices.

With the price revision, the government has also increased the petroleum levy on petrol from Rs6.5 to Rs10 per litre and on HSD from Rs6.5 to Rs8 per litre. General sales tax has been raised from 4.5% to 8% on petrol and from 12% to 13% on HSD.

In November, the government pushed up prices of petroleum products by up to 8.5%. However, it absorbed the major impact of increase in international crude prices and only partially passed the hike on to consumers.