Govt Cuts Price of Diesel by Rs 30 Per Liter
The government on Monday announced a significant reduction in the price of diesel by Rs 30 per liter, effective from May 16, 2016.
The government has decreased the price of high-speed diesel (HSD) by Rs 30 per liter, while the prices of other petroleum products, including petrol, kerosene oil, and light diesel oil, have been reduced by Rs 12 per liter each.
According to a statement from the finance ministry, the government has decided to lower the existing prices of petroleum products in light of the declining trend in international markets.
The aim is to pass on the benefits of falling prices to the consumers and provide maximum relief.
Currently, the government is charging a maximum petroleum levy (PL) of Rs 50 per liter on petrol, high-speed diesel, and HOBC, as approved in the budget. Consequently, there is no room to adjust the reduction in prices of petroleum products to generate more revenue.
The revenue from the petroleum levy goes directly to the federal government. However, there is an opportunity to increase the rate of general sales tax on these petroleum products.
However, since the revenue from sales tax goes to the provinces, the government has chosen to lower the prices of petroleum products amidst the current political turmoil.
Following the recent reduction, the price of petrol has decreased from Rs 282 to Rs 270 per liter, marking a cut of Rs 12 per liter. Petrol is used in motorcycles and cars and is also an alternative fuel to CNG.
High-speed diesel will now be available at a rate of Rs 258 per liter, compared to the previous price of Rs 288 per liter, resulting in a reduction of Rs 30 per liter.
High-speed diesel is widely used in the transport and agriculture sectors, so this reduction will have a positive impact, particularly in the ongoing sowing season in the agriculture sector.
The price of kerosene oil has decreased from Rs 176.07 to Rs 164.07 per liter, representing a reduction of Rs 12 per liter.
Kerosene oil is predominantly used in remote areas, especially in the northern part of Pakistan, for cooking purposes where LPG is not readily available. The Pakistan army also relies on kerosene oil in the northern region.Fuel Your Knowledge: Check Out the Latest Furnace Oil Prices in Pakistan Today!
The price of light diesel oil (LDO) has been set at Rs 152.68 per liter, down from the earlier price of Rs 164.68 per liter. LDO is primarily used in the industrial sector.
