In its first fuel price revision announcement, the newly elected government on Friday maintained the price of petrol but slashed diesel for the next fortnight.

In an an­­nouncement before midnight, the Ministry of Finance said the new price of diesel would go into effect on March 16, as recommended by the Oil and Gas Regulatory Authority (Ogra).

The price of petrol remains Rs279.75 per litre, while the price of high-speed diesel has been decreased by Rs1.77 to Rs285.56 per litre.

Previously, informed sources said the petroleum prices were estimated to generally remain stable as the premium on petrol import had increased to $12.15 per barrel from $10.45 in February but exchange rate and international product prices remained range bound. The premium on the import of high-speed diesel (HSD) has remained unchanged at $6.50 per barrel.

The government has already achieved a Rs60 per litre petroleum levy — the maximum permissible limit under the law — on both petrol and HSD. The government had set a budget target to collect Rs869bn as petroleum levy on petroleum products during the current fiscal year under the commitments made to the International Monetary Fund (IMF).

It has already collected about Rs475bn in the first half (July-December) of the current fiscal year although the per litre levy was gradually increased. The government is expected to mop up about Rs970bn by the end of the year although the revised target has now been set at Rs920bn by end-June.

At present, the government is charging about Rs82 per litre tax on both petrol and HSD. Although the general sales tax (GST) is zero on all petroleum products the government is charging Rs60 per litre PDL on both products.