ISLAMABAD: The government on Monday decided not to increase the prices of petrol and high-speed diesel (HSD) by adjusting taxes, but increased the rates of kerosene and light diesel oil.

“Despite very limited fiscal space, the government has decided that the prices of petrol and HSD will remain the same,” said the Ministry of Finance. On the other hand, it increased the price of kerosene by Rs3.42 per litre and light diesel oil by Rs2.19 per litre.

This is third fortnight that the government did not increase the prices of major petroleum products despite higher import cost after price hike for five consecutive fortnights.

As such, the ex-depot price of HSD and petrol would remain unchanged at Rs116.08 and Rs111.90 per litre, respectively. On the other hand, the ex-depot prices of kerosene and LDO were increased by 4.26pc and 2.76pc, respectively, to Rs83.61 and Rs81.42 per litre.

The government had to cut the petroleum levy on petrol by Rs1.42 to Rs11.23 per litre to maintain it at existing level. However, the levy on HSD was slightly increased by 21 paisa to Rs12.74 per litre. On kerosene and LDO it was reduced to zero.

An official said the government had already collected almost 30pc higher than targeted revenue on petroleum products through the levy in first six months of 2020-21. There­vfore, it was comfortable with minor adjustments in petroleum levy.

Published in Dawn, March 16th, 2021