In a significant relief for consumers grappling with inflation, the government announced a welcome reduction in petrol and high-speed diesel (HSD) prices for the upcoming fortnight.
Effective from May 16 (Thursday), the new prices bring respite as petrol sees a decrease of Rs15.39 per litre, now priced at Rs273.10, while HSD experiences a dip of Rs7.88 per litre, with the new rate at Rs274.08.
The decision, outlined in a notification by the finance ministry, comes as a response to the recent downward trend in global petroleum prices. The ministry highlighted that the Oil and Gas Regulatory Authority (OGRA) diligently computed consumer prices, aligning them with international market fluctuations.
Petrol is used in motorbikes and cars and is considered an alternative to compressed natural gas (CNG) especially in Punjab province.
The CNG outlets in Punjab have been using imported gas for the last decade, therefore, the use of petrol has increased due to the shortage of gas.
But the oil industry claimed that smuggled petrol was being used by different units across the country, especially in Punjab and Sindh, noting that their sale did not witness a major increase.
The HSD is widely used in transport and agriculture sectors, therefore, reduction in its price is poised to have a significant impact on lowering inflation countrywide.
The government has slashed the price of kerosene oil by Rs9.86 per litre whereas that of light diesel oil (LDO) by Rs7.54 per litre.
Kerosene will now be sold at Rs173.48 per litre from Rs183.34 and LDO at Rs161.17per litre from Rs168.71.
Read more: Fuel prices expected to drop significantly in May
Kerosene is mainly used for cooking purposes in remote areas of the country, particularly in northern parts. It also an alternate to the LPG.
In the northern regions, the armed forces stand as a major consumer of LPG, utilizing it extensively for heating and food preparation. LDO is mainly used in industries.
At present, the government is charging Rs60 per liter petroleum levy each on petrol and HSD. However, the rate of general sales tax (GST) is zero.
The Centre had tactically increased the rate of petroleum levy to avoid sharing it with provinces.
In the past, the GST used to be higher, and the federal government was obligated to share it with provinces.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ