Petrol to now cost Rs. 81.58/liter; high-speed diesel Rs. 80.10/liter; light-diesel Rs. 47.51/liter; and kerosene oil Rs. 47.44/liter
The Government of Pakistan on Thursday announced it was reducing the prices of petroleum products in line with a global reduction in oil prices to pass on the benefits to the general public.
According to an official notification issued by the Finance Division, the price of petrol has been reduced by Rs. 15/liter to Rs. 81.58/liter, against the current Rs. 96.58/liter. Similarly, the price of high-speed diesel has now been reduced by Rs. 27.15 to Rs. 80.10/liter as compared to its existing price of Rs. 107.25/liter.
Meanwhile, light diesel prices have been slashed by Rs. 15 to Rs. 47.51/liter and kerosene oil prices have been reduced by Rs. 30.01 to Rs. 47.44/liter.
The Oil and Gas Regulatory Authority (OGRA) had earlier proposed a decrease of Rs. 33.94/liter in the price of high-speed diesel, which is mainly used in the transport and agriculture sectors. However, the government opted to only pass on Rs. 27.15/liter relief to consumers.
Similarly, OGRA had suggested a cut of Rs. 24.57/liter for light diesel oil but the government chose to only pass on a Rs. 15 cut; a cut of Rs. 44.07/liter for kerosene oil against the Rs. 30.01/liter passed on by the government; and a Rs. 20.68/liter cut in petrol prices against the Rs. 15 passed on to consumers.
The incumbent Pakistan Tehreek-e-Insaf government has increased by over 100 percent the petroleum levy since coming into power, with observers saying this was intended to prevent provinces from collecting funds through general sales tax.
Pakistan is a net importer of petroleum products and meets almost 85% of its needs through imports. The prices of fuel had spiked in the country due to the rupee depreciating, but a global fall in demand due to the coronavirus has resulted in prices being lowered once more.