In its inaugural adjustment to fuel prices, the newly instated government opted to maintain the price of petrol while implementing a reduction in the cost of diesel for the forthcoming two weeks.
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The Ministry of Finance, in a statement issued prior to midnight, announced that the revised diesel price would come into effect from March 16, following the recommendation put forth by the Oil and Gas Regulatory Authority (Ogra).
Petrol will continue to be priced at Rs279.75 per liter, whereas the rate for high-speed diesel has been lowered by Rs1.77 to Rs285.56 per liter.
Insiders previously indicated that petroleum prices were anticipated to remain relatively steady, given that the premium on petrol imports had risen to $12.15 per barrel from $10.45 in February. Concurrently, the exchange rate and international product prices were reported to be stable. Similarly, the premium on high-speed diesel (HSD) imports remained constant at $6.50 per barrel.
Having already reached the maximum permissible limit of Rs60 per liter in petroleum levy, as stipulated by law, on both petrol and HSD, the government had aimed to collect Rs869 billion in petroleum levies during the current fiscal year as part of its commitments to the International Monetary Fund (IMF).
By the conclusion of the first half of the fiscal year (July-December), approximately Rs475 billion had been collected, notwithstanding the gradual increase in per liter levies. Projections estimate collections to reach around Rs970 billion by year-end, although the revised target now stands at Rs920 billion by the end of June.
Presently, the government imposes a tax of about Rs82 per liter on both petrol and HSD. While the general sales tax (GST) remains zero on all petroleum products, the government applies a Rs60 per liter Petroleum Development Levy (PDL) on both products.
