The federal government on Thursday slashed the prices of petroleum products by up to Rs10 per litre effective from December 16, 2022.
Finance Minister Ishaq Dar in a tweet said that the government had reduced the price of high speed diesel by Rs7.50 per litre.
The government slashed the price of petrol by Rs10 per litre, kerosene oil by Rs10 per litre and light diesel oil (LDO) by Rs10 per litre.
Following reduction in the prices of petroleum products, the high speed diesel will be sold at Rs227.80 per litre. Petrol will be available at Rs214.80 per litre following reduction in the price.
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The kerosene oil will be sold at Rs171.83 per litre.
The price of light diesel oil has been reduced to Rs169 per litre.
The finance minister, during a news conference, said that the price of high-speed diesel (HSD) had been slashed by Rs7.5, petrol Rs10, kerosene oil Rs10 and LDO by Rs10.
He said that the new price of HSD would be Rs227.80 per litre, petrol Rs214.80 per litre, kerosene oil Rs171.83 per litre and LDO Rs169 per litre.
Dar said that the new price would be implemented from midnight.
According to the calculation, the price of HSD was to be reduced by Rs12.37 per litre for the second half of December 2022.
The government committed to the International Monetary Fund (IMF) that it would impose general sales tax (GST) on petroleum products once they reached the maximum limit for petroleum levy which was Rs50 per litre on each petroleum product.
The government is charging a petroleum levy of Rs50 per litre on petrol, Rs25 per litre on HSD, Rs7.01 per litre on kerosene oil and Rs15.39 per litre on LDO.
The government, however, promised the international lender that it would increase the petroleum levy on HSD to Rs50 by April 2023.
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The government had reduced the price of HSD by Rs7.50 per liter against projected reduction of Rs12.37 per litre.
The HSD is widely used in agriculture and transport sectors. Therefore, partial reduction in its price was also a major relief for agriculture and transport sectors which would reflect in inflationary impact on the lives of the people.
Petrol is used in motorbikes and cars and is an alternative of CNG.
The CNG stations in Punjab have been operating on imported LNG which is not available during the current season. Therefore, the demand of petrol will be higher during the month of December.
Kerosene oil is used in remote areas of Pakistan, especially the northern part of the country, where LPG or pipe gas was not available for cooking purpose.
Pakistan Army is also a key user of kerosene oil in northern part of the country.
The LDO is used in industry.
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