Petrol, HSD prices cut by Rs2 per litre

The federal government on Wednesday slashed the price of petroleum products by Rs2 per litre for the next fortnight. The new prices will be applicable from May 1.

According to a notification issued by the Finance Department, The government has decided to revise the prices of petroleum products for the forthcoming fortnight, based on the recommendations of OGRA & the relevant ministries.

As per notification, the petrol will be sold at Rs252.63 per litre after the cut of Rs2 per litre. Similarly, the High Speed Diesel (HSD) will be traded at Rs256.64 per litre with the decline of Rs2 per litre.

Prior to the revision, the petrol was being sold at Rs254.63 per litre and the HSD at Rs258.64 per litre. The Finance Division notification did not mention the price of kerosene oil and light diesel oil.

Interestingly, the government kept the oil prices unchanged for the last fortnight despite a major price decline in the international market. The consumers were expecting around Rs8 per litre relief but the government dampened their hopes and decided to fund Balcohistan development projects with the oil proceeds.

In the mid of April, a presidential ordinance was issued empowering the federal government to increase the Petroleum Development Levy (PDL) on the petroleum products at will and removed the maximum ceiling that had capped it to Rs70 per litre.

The ordinance abolished the Fifth Schedule for the levy on petroleum products, which authorised the government to impose any levy at any rate. The ordinance came as the government increased the PDL on petroleum products, instead of reducing the oil prices following reduction in the global market.

High speed diesel is widely used in the transport and agriculture sectors. Therefore, fluctuation in its price also contributes to the inflationary in the country.

Petrol is used in motorcars and bikes and its demand had increased mainly due to use of imported gas in CNG stations in Punjab province.