ISLAMABAD: The government on Friday reduced the price of high speed diesel (HSD) and kept unchanged that of petrol for the next fortnight, ending December 31, in line with international prices.

The finance ministry said Ogra had worked out the consumer prices of petroleum products, bas­ed on the price variations in the international market during the last two weeks.

The ex-depot price of HSD was reduced by Rs3.05 per litre (1.18pc) to Rs255.38 per litre for next 16 days from Rs258.43 over the past fortnight. Most of the transport sector runs on HSD.

Its price is considered inflationary as it is mostly used in heavy transport vehicles like trains, trucks, buses, tractors, tube-wells and threshers and particularly adds to the prices of vegetables and other eatables. Trans­port fares seldom come down with lower diesel rate.

The ex-depot petrol price was maintained at Rs252.10 at present. Petrol is mostly used in private transport, small vehicles, rickshaws and two-wheelers and has a direct bearing on the budget of middle- and lower-middle class.

The government announced Rs3.32 per litre cut in the price of kerosene oil to Rs161.66, and Rs2.78 per litre reduction in the ex-depot price of light diesel to Rs148.95 per litre.

At present, the government is charging about Rs76 per litre tax on both petrol and HSD. Although GST is zero on all the petroleum products, the government is charging Rs60 PDL per litre on both products that normally impact the masses.

The government is also charging about Rs16 per litre custom duty on petrol and HSD, irrespective of their local production or imports.

In addition, about Rs17 per litre distribution and sale margins are going to oil companies and their dealers.

On the other hand, it is charging Rs50 per litre on light diesel and high octane blending component and 95RON petrol used in luxury vehicles.

Published in Dawn, December 16th, 2024