Govt decides to reduce prices of petroleum products by Rs.2 per litre

ISLAMABAD: The government has decided to reduce the prices of petroleum products by Rs.2 per litre, each for Petrol and Diesel.

The prices of Kerosene and Light Diesel Oil (LDO) will be reduced by Rs. 3 and Rs 5 per litre respectively, said a statement issued by Ministry of Finance here on Friday.

These prices shall be applicable on the product Ms 92 RON, Rs 95.83 per litre, High Speed Diesel (HSD) Rs. 110.94 per litre , Kerosene Oil Rs.  83.50 per litre and LDO , 77.44 per litre respectively  from December  1 to  December 31.

It may be added that OGRA works out the petroleum prices for a month on the basis of the prices of cargoes purchased for that particular month.

The prices for December 2018 are accordingly based on the purchases made during the period from October 10 to November 12, 2018.

The average price of these cargoes remained $76.68/BBL for Petrol and $86.61 for HSD.

The government has substantially reduced the taxes/levies on petroleum products during the period September- November, 2018.

During the month of November sales tax on MS Petrol and HS Diesel was 4.5% and 12% respectively, compared to 15% and 27.5% in May 2018, which means a reduction of 10.5% and 15.5% respectively.

Similarly petroleum levy on MS Petrol and HS Diesel which was Rs10 and Rs .8 per liter in May has been reduced to Rs 6.15 and Rs 6.51 respectively.

The international prices of crude oil are on a declining trajectory.

The government intends to provide relief to the consumers in the determination of final consumer prices, while keeping in view the revenue requirements.