Petrol price reduced by Rs5 per litre, diesel unchanged

• Price of petrol reduced by Rs5 per lite
• Price of diesel remain unchanged at Rs280 per litre
• Kerosene has been reduced by Rs15 per litre

ISLAMABAD: The government has reduced the price of petrol by Rs5 per litre while the price of diesel has remained unchanged, BOL News reported.

Finance Minister Ishaq Dar made the announcement on the changes in the prices of petroleum products. The price of petrol will remain Rs267 per litre for the next fortnight, while the price of High-Speed Diesel (HSD) remains unchanged at Rs280 per litre.

The finance minister further said the prices of kerosene will be reduced by Rs15 per litre to Rs187.73 per litre while light-speed diesel (LSD) will be cheaper by Rs12 per litre to Rs 184.68 per litre. The prices will be applied from midnight (March 1) for the next fortnight.

Petroleum Products Prices:

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March 1 to 15 , 2023:

High Speed Diesel- with No change Rs 280 per litre

MS Petrol —with Rs 5 reduction,Rs 267 per litre

Kerosene Oil – with Rs 15 reduction, Rs 187.73 per litre

Light Diesel Oil -with Rs 12 reduction, Rs 184.68 per litre

— Ishaq Dar (@MIshaqDar50) February 28, 2023

The move was unexpected as the Oil and Gas Regulatory Authority (OGRA) has recommended an increase in the prices of petroleum products.

OGRA sent two proposals to the government regarding the petroleum products prices. The first proposal recommends imposing General Sales Tax (GST) on petroleum products following the conditions set by the International Monetary Fund (IMF).

OGRA has proposed levy of 2 to 5 percent per litre on petrol and diesel. A proposal to levy Rs5-10 per litre on diesel has also been sent to the federal government.

If GST of 2% is imposed, the petrol price could be increased up to Rs5.44, and if 5% GST is imposed, the price of petrol could go up by Rs13.6.  A proposal to increase diesel by Rs10-15 per litre has been sent to the federal government.

According to the second proposal, OGRA has advised to maintain the prices of petroleum products for next fortnight as crude oil prices had witnessed a decline in the global markets. It suggested that the prices could also be maintained by levying taxes commensurate with global markets.

It was earlier reported that the government has decided not to decrease the prices for local consumers to adjust the previous exchange losses as well as to raise taxation on the fuels.

Petrol and diesel prices in the global market have recorded a significant decline. The average price of diesel for the next fortnightly review dropped by $7 per barrel. This comes to a reduction of Rs30 per litre for the domestic price of diesel.

The average price of diesel in the global market fell to around $100 per barrel compared to $107 per barrel in the previous fortnight.

The average price of petrol dropped to $90 per barrel for the next review of prices compared to $93 per barrel, translating into a Rs10 per litre reduction for the consumers in the local market.

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