The federal government on Thursday slashed the prices of all petroleum products by up to Rs30.01 per litre for May by adjusting petroleum levy (PL).
The new prices would be effective from May 1.
In a statement, the Finance Division says that the ex-depot price of High Speed Diesel (HSD) has been slashed by Rs27.15 per litre.
The prices of MS (petrol) and Light Diesel Oil (LDO) has been reduced by Rs15 per litre. Kerosene oil has also been seen a massive reduction by Rs30.01 per litre.
Finance Division maintained the GST at 17 percent standard rate, however, has increased the PL on all the petroleum products for the month.
The PL on HSD will be charged at Rs 30 per litre. The PL on petrol has been fixed at Rs 23.76 per litre. The PL on Kerosene Oil is now Rs 18.02 per litre and Rs 11.18 on LDO. Major revenue earning through PL is HSD and petrol, therefore, the government is kept the rate of PL on both high.
The Oil and Gas Regulatory Authority (OGRA) recommended the Finance Division on Wednesday to cut the petroleum prices by up to 57 percent based on existing 17 percent general sales tax (GST) and last notified petroleum levy (PL) for April.
According to senior FBR officials, the FBR has not changed the standard rate of 17 percent sales tax on petroleum products during April 2020.
Since sales tax is 17 percent of the price, hence we will lose additional revenue of over Rs7 billion on new prices of the POL products during May 2020, the FBR officials added.
The new ex-depot price of MS (petrol) has been fixed at Rs81.58 per litre from Rs96.58 per litre or Rs15 per litre reduction.
The OGRA recommended to slash the price by Rs20.68 per litre.
The government, however, did not pass on full impact and adjusted Rs5.68 per litre in PL.
The PL on petrol stood at Rs18.90 per litre in April from Rs10 per litre.
The government has slashed the ex-depot price of HSD by Rs27.15 per litre.
The new price is now Rs80.10 per litre instead of previous price of Rs107.25 per litre. The oil and gas regulator recommended the government to decrease the price by Rs33.94 per litre.
Rs6.79 per litre has been adjusted in PL.
In April, the government increased PL to Rs24.20 per litre from Rs8 per litre.
The regulator notified the ex-depot price of local product kerosene oil at Rs47.44 per litre.
The rate has been revised down from Rs77.45 per litre to Rs47.44 per litre or a reduction of Rs30.01 per litre.
The Ogra recommended a decrease of Rs44.07 per litre.
Rs14.06 has been adjusted in PL.
The price of PL on kerosene oil was Rs6 per litre.
New price of LDO has been fixed at Rs47.51 per litre.
LDO price has reduced by Rs15 per litre from Rs62.51 per litre in April.
Ogra recommended a reduction in the price of LDO by Rs24.57 per litre.
Rs9.57 per litre has been adjusted in PL on LDO, which was Rs3 per litre.
Prices of Brent crude oil has went down 65 percent since February 24, 2020 due to COVID-19 and low demand of the oil.
In March, Finance Division stated that the downward trend in global oil prices will continue for next three months and a relief of Rs75 billion on petroleum prices will be given.
On Thursday, the Finance Division stated, "The government is extending maximum relief to the public. Relief packages include economic stimulus package, Ehsaas Emergency Relief Programme, Incentive Package for SMEs and many other relief measures. The latest one is the considerable decrease in the prices of various petroleum products ranging from Rs15 to Rs30 per litre to further facilitate the public".
Imports of petroleum products dipped nearly 33 per cent year-on-year in March owing to the sharp reduction in demand for petroleum products as a result of coronavirus pandemic, according to the Pakistan Bureau of Statistics (PBS).
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