Finance ministry decides to reduce petroleum prices

The Ministry of Finance has decided in principle to reduce the price of petroleum products after the International Monetary Fund (IMF) agreed to freeze the tax imposed on petrol for three months.

According to Express News, change in the prices of petroleum products will be announced on Friday (today).

According to the agreement with the IMF, levy on petrol is to be increased to Rs50 per litre by January 2023.

It should be noted that the levy on petrol is currently around Rs37.42 per litre while on high speed diesel (HSD) around Rs7.35 per litre. Besides, levy on kerosene and light diesel oil (LDO) is Rs10 per litre.

Also read: Price of petrol likely to drop by Rs9

Sources maintained that levy on kerosene and LDO will be gradually increased to Rs50 per litre.

A day earlier, it was reported that the prices of petroleum products were likely to come down up by Rs15 from October 1 due to a sharp decline in rates of POL in international markets.

Industry sources said Ogra had started working in proportion to the prices of petroleum products in the global market.

The price of petrol is likely to drop by Rs9 in the initial working and HSD by Rs18.