Inside Financial Markets
Petroleum prices cut by up to 2.5% - Inside Financial Markets

Petroleum prices cut by up to 2.5%

– Dawn News

 While increasing the tax rates on certain products, the government on Thursday reduced the prices of all the petroleum products by 1.6 to 2.5pc for the next 15 days to pass on the partial impact of decline in the international prices.

According to a notification issued by the ministry of finance, the ex-depot price of petrol was reduced by Re1.79 and that of high-speed diesel (HSD) by Rs2.32 per liter.

It reduced the ex-depot price of kerosene and light diesel oil (LDO) by Rs2.06 and Rs2.21 per liter, respectively.

As such, the ex-depot rate of HSD was fixed at Rs110.76 per liter instead of Rs113.08 at present, showing a reduction of 2.05pc. Likewise, the ex-depot petrol price was set at Rs108.56 per liter against Rs110.35 at present, down 1.62pc.

Levy on kerosene and LDO increased

Similarly, the ex-depot price of LDO was reduced by 2.77pc to Rs77.65 from Rs79.86 per liter. Also, the ex-depot price of kerosene was set at Rs80 per liter instead of Rs82.06, down 2.5pc.

A senior finance ministry official said the petroleum levy on kerosene and LDO was increased to improve revenue collection.

The prices of petroleum products have been reduced for the second consecutive fortnight. The government kept the prices unchanged for three fortnights by reducing petroleum levy rates after increasing them for five consecutive fortnights.

The government kept unchanged the rate of petroleum levy for petrol at Rs11.23 per liter and Rs15.29 per liter on HSD.

The government had already collected almost 30pc higher than targeted revenue on petroleum products through petroleum levy in the first six months of the current financial year. Therefore, it was comfortable with minor adjustments in petroleum levy. According to the ministry of finance, the collection of petroleum levy was Rs275bn in the first six months against the annual target of Rs450bn.

Syed Zaki Hussain

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