The Ministry of Finance, late on Sunday night, notified a massive decreased in the prices of fuel products for the next fortnight, proving “relief” for a populace struggling under the yoke of massive inflation.
According to the notification, the government has reduced the price of petrol by Rs. 40/liter, bringing it from Rs. 323.38/liter to Rs. 283.38/liter, while also slashing the price of high-speed diesel by Rs. 15, reducing its consumer price from Rs. 318.18/liter to Rs. 303.18/liter.
The Finance Ministry said the prices were being decreased due to a global decline in the prices of petroleum products, as well as the ongoing appreciation of the Pakistani rupee against the U.S. dollar. The new prices came into effect at 12 a.m. on Oct. 16 and would remain in place until midnight on Oct. 31.
The government also slashed the prices of other fuel products, reducing the rate for light diesel by Rs. 19.59/liter to Rs. 193.45/liter and kerosene oil by Rs. 22.43/liter to Rs. 215.28/liter.
Authorities are currently collecting the maximum permissible petroleum development levy (PDL) of Rs. 60/liter on petrol, while also charging Rs. 55/liter PDL for diesel. However, there is zero general sales tax on all fuel products. According to the federal budget passed for the ongoing fiscal year, authorities must collect Rs. 869 billion under the PDL head in line with commitments made to the International Monetary Fund (IMF).