ISLAMABAD: The government has reduced prices of petroleum products from Rs3 to Rs6 per litre after a late-night decision in the wake of slight adjustments in the rates of sales tax.
The new rates will come into effect from July 8.
The decision was announced following the cabinet approval for reduction in the rates of sales tax in compliance with the Supreme Court’s suo motu notice of July 5 of increase in petroleum prices.
The apex court had directed the federal government to reconsider the matter in order to provide all possible relief to the general public.
In the light of decrease in sales tax rates, the petrol price has been reduced by Rs4.26 per litre to Rs95.24. Earlier the price was increased to almost Rs99.50 per litre.
The price of most widely consumed petroleum fuel is high speed diesel (HSD) which has been revised downward by Rs6.37 per litre to Rs112.94. Earlier the price of HSD was enhanced to Rs119.31 per litre. HSD fuel is consumed in heavy motor vehicles and large generators.
The price of kerosene oil has been reduced by Rs3.74 per litre to Rs83.96. It was enhanced to Rs87.70 per litre.
The price of light diesel oil has been lowered by Rs5.54 per litre to Rs75.37. Earlier it was scaled up to Rs80.91 per litre.
According to an official statement issued by the Federal Board of Revenue, in view of the directions of the Supreme Court the matter has been reconsidered and the federal cabinet has decided that sales tax rates be reduced from 17 to 12 per cent for motor spirit and kerosene oil, from 31pc to 24pc on high speed diesel and from 17 to 9pc on light diesel oil.
The federal government is confident that the relief in petroleum prices will not only provide much-needed respite to people but also reduce the cost of production and give a boost to economic activity. The reduction in prices of petroleum products will be effective from 12 midnight, added the announcement.
The government would suffer an estimated loss in revenue of Rs10 billion as result of the reduction in petroleum prices.
Published in Dawn, July 8th, 2018
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