Petrol price slashed by Rs5 per litre

High-speed diesel price to remain unchanged for next fortnight despite drop in international market

ISLAMABAD:

The government on Tuesday reduced the price of petrol by Rs5 per litre with effect from March 1 (today).

However, despite the prediction of a drop in diesel price, the government kept it unchanged in order to raise the petroleum levy rate.

The price of kerosene oil also witnessed a drop of Rs15 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 light diesel oil (LDO) price also saw a major drop of Rs12 per litre.

The government reduced the petrol price as it was already charging Rs50 per litre petroleum levy on it. Therefore, it did not have space to adjust further reduction in the petroleum levy.

The price of petrol decreased to Rs267 per litre from Rs272.

Petrol is used in motorbikes and cars and is an alternative to compressed natural gas (CNG), especially in Punjab.

Also read: Moody’s downgrades Pakistan’s credit rating to ‘Caa3’

The CNG retail outlets have been using imported liquefied natural gas (LNG). However, the outlets had not been operating in recent winter months due to unavailability of LNG.

The price of high speed diesel has been maintained at Rs280 per litre.

The government was expected to cut its price by Rs20 per litre. However, the government had a space to increase rate of petroleum from Rs40 to Rs50 per litre on it. Therefore, the government did not cut its price and instead increased the rate of taxes to collect more revenue.

The government had already decided to increase the rate of petroleum levy in March and April in line with the commitment made with the International Monetary Fund.

Diesel is widely used in transport and agriculture sectors.

The reduction in its price could result in a relief for the farmers and a positive inflationary impact.

Kerosene oil is used for cooking purpose, especially in remote northern areas of Pakistan where LPG is not available.

Pakistan Army was also a key user of kerosene oil in northern parts of the country.

The price of kerosene oil dropped to Rs187.73 per litre against the earlier rate of Rs202.73.

The LDO is used in the industry and will be available now at Rs184.68 per litre as compared to Rs196.68 per litre.