Petrol price slashed by Re0.25/litre, diesel by Rs2.40/litre

[ahlam1399]

ISLAMABAD: The government has slashed petrol price by Re0.25 and diesel price by Rs2.40/litre for December 2019 effective from Sunday (today) till midnight of December 31.Kerosene price has also been reduced by Re0.83/litre and Light Diesel Oil (LDO) by Rs2.90 a litre, which the government says will help bring down the cost of doing business and ease the inflationary pressure. It is worth mentioning that the Oil and Gas Regulatory Authority (Ogra) had suggested to the government same amounts of reduction for these products, which the government fully accepted.The highest reduction has been Rs2.9/litre or 3.4 percent in Light Diesel Oil (LDO) — an industrial fuel. Another cut of Rs2.4/litre or 1.9 percent has been made in the diesel price, which is a heavy transportation fuel. This cut would benefit the industrial sector, especially cement, steel, bricks and other exports-import products.For common consumers, only Rs0.25 (or 0.2pc) cut has been made in petrol price and Rs0.83 (or 0.9pc) cut in kerosene.After the government decision, petrol price will come down from the existing Rs114.24 per litre to Rs113.99/ litre, diesel price will reduce to Rs125.01/litre from the current Rs127.41/litre.The price of LDO, which is mainly used for industrial purposes, will reduce to Rs82.43/litre from Rs85.33/litre. Kerosene price will come down from current Rs97.18 to Rs96.35/litre. Kerosene is used for cooking, especially in remote areas where LPG or pipeline gas is not available.It is worth mentioning that the government is charging 17 percent General Sales Tax (GST) on all petroleum products. Apart from it, the government is also collecting Petroleum Levy (PL) on these products which is taken from consumers.Currently, the government is charging Rs18/liter petroleum levy on diesel, 15 rupees on petrol, six rupees on kerosene and three rupees on LDO.In the previous government of the PML-N, the petroleum levy was charged in the range of three to 10 rupees a liter on these products; however, GST was higher than the current rate.Since the GST collected on these products is transferred to the provinces, so keeping in view its high revenue requirements, the federal government reduced GST while increased the petroleum levy to collect money for the federal kitty.Since July 2019, Pakistan is also receiving monthly oil supplies worth $275 million from Saudi Arabia on deferred payment. Under this arrangement, Pakistan would get this oil facility to the tune of $9.9 billion over next three years.http://feeds.feedburner.com/~r/com/cwEr/~4/AheUeTAANJg

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