ISLAMABAD: The government has slashed prices of petroleum products by up to Rs3 per litre effective from April 1, 2021.
According to a notification issued on Wednesday, it reduced the price of high-speed diesel (HSD) by Rs3 per litre, petrol by Rs1.55 per litre, kerosene oil by Rs1.55 per litre and light diesel oil (LDO) by Rs1.56 per litre.
The government reduced the prices following recommendations of the Oil and Gas Regulatory Authority (OGRA). Prime Minister Imran decided to cut prices despite opposition from the Finance Division, which wanted to adjust the price reduction by increasing the rate of petroleum levy to fetch more revenue from the consumers.
OGRA determines ex-depot prices of petroleum products on the basis of petroleum levy and general sales tax. Earlier in March, the federal government raised ex-refinery prices by reducing the petroleum levy on petroleum products.
Following the government’s decision to cut prices, the price of petrol has come down to Rs110.25 from Rs111.90 per litre, with a reduction of Rs1.55 per litre. The price of high-speed diesel now stands at Rs113.08 against Rs116.08 per litre previously.
The price of kerosene oil has been slashed to Rs82.06 from Rs83.61 per litre. It is used in remote areas for cooking purposes where liquefied petroleum gas (LPG) is not available.
The price of light diesel oil has come down to Rs79.86 against Rs81.42 per litre, a reduction of Rs1.56. It is used by the industry. These petroleum products are a major source of revenue for the government.
