Govt cuts petrol, diesel prices by Rs5
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Loading... - Angel Tamboli
- 16 Dec 2021
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Instead of passing full relief to the people, the federal government on Wednesday only reduced the rates of petrol and high speed diesel by Rs5 per litre “in view of the declining price trend of petroleum products ” across the world.
The Oil and Gas Regulatory Authority (Ogra) had proposed a reduction in prices of petroleum products by Rs8 to 10 per litre. Ogra had recommended Rs10.77 and Rs7.73 per litre reduction in the prices of petrol and high-speed diesel (HSD), respectively.
However, the government slashed the price of petrol and HSD by Rs5, kerosene oil by Rs7, and light diesel oil (LDO) by RsRs7.1 per litre.
After the reduction, the new price of petrol has come down to Rs140.82, HSD to 137.62, kerosene oil to Rs109.53, and LDO to Rs107.06 per litre. Petrol is used in motorcycles and cars. Consumers in Punjab were already using imported gas. The Sui Southern Gas Company (SSGC) had also suspended gas supply to CNG stations in Sindh and Balochistan.
HSD is widely used in transport and farm sectors. Kerosene oil is used in remote areas for cooking where LPG is unavailable. LDO is used in industries. The government has increased General Sales Tax (GST) on petrol by Rs4.07 per litre from Rs2.34 per litre (1.63%) to Rs6.41 (4.77%).
Similarly, the dealer margin on petrol has been increased by Rs0.99 per litre. The oil marketing companies’ (OMC) margin has been jacked up by Rs0.71 per litre. On HSD, the government has decreased its price by Rs5 per litre only and adjusted the remaining in the GST and petroleum margin. The GST on HSD has been increased by Rs1.19 per litre from Rs10.49 per litre (7.37%) to Rs11.68 per litre (9.08%).
Similarly, the dealer margin on HSD has been jacked up by Rs0.83 per litre. The OMC margin has been hiked by Rs0.71 per litre. Shortly before the announcement, Special Assistant to the Prime Minister for Political Communication Dr Shahbaz Gill had tweeted that the public would soon receive "good news" about petrol prices.
A Finance Division handout read the government had decided to revise the existing prices "in view of the declining price trend of petroleum products in [the] global market and transform the impact to the masses". The new prices will be effective from Thursday (today). Read More…
