Finance Minister Miftah Ismail announced on Sunday a reduction in petrol price of Rs 3.05 per liter and an increase of Rs 8.95 in the price of diesel.
“The government is able to cut the price of petrol by Rs 3.05 per litre,” he tweeted. “However, the price of diesel has increased by Rs 8.95.”
He said the new prices will be in effect from midnight tonight.
The price of kerosene was similarly increased by Rs 4.62 per liter while that of light diesel oil (LDO) was reduced by Rs 0.12 per litre.
The new prices are as follows: Rs227.19 for petrol, Rs244.95 for diesel, Rs201.07 for kerosene and Rs191.32 for LDO.
According to a press release he shared from the finance department, the government had decided to review existing petroleum product prices to pass on the impact of petroleum price fluctuations on the international market and exchange rate fluctuations.
Senior government officials had told: Dawn that both major petroleum products — high-speed diesel (HSD) and gasoline — would drop significantly as of Aug. 1, but three key factors — currency depreciation, higher petroleum development tax (PDL) and dealer commission increase — deprived consumers of the international price cut.
These officials said the government had taken previous action with the International Monetary Fund (IMF) to raise the PDL by Rs10 per liter for HSD, kerosene and LDO and Rs5 per liter for petrol to set a uniform rate of Rs15 per liter. guarantee for all products. early August. Currently the PDL is Rs10 per liter on petrol and Rs5 each on HSD, kerosene and LDO.
On July 14, Prime Minister Shehbaz Sharif had announced a cut from Rs18 to Rs40 per liter in the prices of various products as international prices fell. This was the first time the PMLN-led coalition government cut oil prices after coming to power in the second week of April.
Between May 26 and July 1, the price of gasoline had risen 66 percent, or 99 rupees per liter, while the price of HSD has risen 92 percent since May 26, from 144.15 rupees per liter, to 132.39 rupees per liter. Similarly, the ex-depot price of kerosene had risen to Rs 230.26 per litre, up 95 percent between May 26 and July 1. Similarly, LDO’s ex-deposit price rose to Rs 226.15 on July 1, up 80 percent. from Rs125.56 per liter on May 26, an increase of about Rs100.59 per litre.
Under the agreement with the IMF, the government should gradually increase the PDL on oil products to a maximum of Rs50 per liter to collect Rs855bn during the current fiscal year.