Govt Reduces Price of Petrol by Rs. 5 Per Litre
From March 1(today), the government reduced the price of petrol by Rs5 per litre.
Despite the expectation of a decrease in diesel prices, the govt chose to maintain it at the same rate to increase the petroleum levy rate.
In addition, the price of kerosene oil has dropped by Rs15 per litre.
The price of light diesel oil (LDO) also experienced a substantial decrease of Rs12 per litre.
The government reduced the price of petrol from Rs272 to Rs267 per liter as it was already charging a petroleum levy of Rs50 per litre.
petroleum levy
Therefore, the government could not adjust the petroleum levy any further to reduce the price.
Cars and motorbikes primarily use petrol as an alternative to compressed natural gas (CNG), especially in Punjab.
CNG retail outlets have been relying on imported liquefied natural gas (LNG), but they have not been operational in recent winter months due to the unavailability of LNG.
The government did not reduce the price of high-speed diesel, which is widely used in the transport and agriculture sectors, despite expectations of an Rs20 per litre reduction.
petroleum levy from Rs40 to Rs50 per liter
Instead, the government increased the rate of taxes to collect more revenue by raising the petroleum levy from Rs40 to Rs50 per litre, which it had already committed to the International Monetary Fund.
Diesel Price
However, the reduction in the price of diesel could provide relief to farmers and have a positive inflationary impact.
Kerosene Oil
Kerosene oil witnessed a drop in price from Rs202.73 to Rs187.73 per litre.
The Pakistan Army is also a significant consumer of kerosene oil in the northern regions of the country.
Additionally, LDO is used in the industry and is now available at a lower price of Rs184.68 per litre compared to its earlier rate of Rs196.68 per litre.
