Instead of providing complete relief to the people, the federal government decreased the price of petrol and high-speed diesel by Rs5 per liter on Wednesday, citing the “global dropping price trend of petroleum products.”
The Oil and Gas Regulatory Authority (Ogra) proposed a price cut of Rs8 to Rs10 per liter for gasoline products. The price of fuel and high-speed diesel (HSD) should be reduced by Rs10.77 and Rs7.73 per liter, respectively.
The government, on the other hand, cut the prices as follows:
- Petrol and HSD by Rs5.
- Kerosene oil by Rs7.
- light diesel oil (LDO) by Rs7.1 per liter.
After reduction:
- The new price of petrol has come down to Rs140.82,
- HSD to 137.62,
- kerosene oil to Rs109.53, and
- LDO to Rs107.06 per liter.
Motorcycles and automobiles run on gasoline. Punjabi consumers were already utilizing imported gas. Gas supply to CNG stations in Sindh and Balochistan was also halted by the Sui Southern Gas Company (SSGC).
HSD is widely used in the transportation and agricultural industries. Kerosene oil is used for cooking in rural places where LPG is unavailable. In industries, LDO is utilized.
The government has raised the General Sales Tax (GST) on petrol from Rs2.34 per liter (1.63 percent) to Rs6.41 per liter (4.77 percent ).
Similarly,
- The petrol dealer margin has been raised by Rs0.99 per liter.
- The profit margin of oil marketing companies (OMCs) has been increased by Rs0.71 per liter.
- The government has only reduced the price of HSD by Rs5 per liter, with the remainder adjusted in the GST and petroleum margin.
Similarly, Dr. Shahbaz Gill, Special Assistant to the Prime Minister for Political Communication, tweeted that the public would soon receive “good news” about petrol prices.
Earlier this week, Adviser to the Prime Minister on Finance and Revenue Shaukat Tarin stated that, as a result of the drop in global prices, petrol prices in Pakistan would also fall. It should be noted that petroleum prices in Pakistan have reached an all-time high, with petrol currently selling for Rs146 per liter.
Last month, inflation reached 11.5 percent, the highest rate in 21 months, as a result of the government’s administrative decisions combined with steep currency depreciation, which made food, electricity, and transportation unaffordable for the average person.
Federal Minister for Information and Broadcasting Fawad Hussain Chaudhry made a tweet on Twitter and said, “Inflation will start coming down in the coming days. After petrol products, prices of other commodities will also come down. Plans like health cards and ration discounts will give more relief in inflation but the real success will be that we Get rid of the debts incurred by Zardari and Nawaz.”
