For the upcoming two weeks, the federal government on Wednesday lowered the price of petrol and high-speed diesel (HSD) by Rs. 2.04 and Rs. 6.47 per litre, respectively.
Govt. Decreased Petrol and HSD Prices
As per the Ministry of Finance’s notice, which is accessible on local news channel, the revised rates for gasoline and HSD are Rs. 281.34 and Rs. 296.71, respectively.
Meanwhile, the cost of a litre of light-diesel oil and kerosene oil was dropped to Rs. 180.45 and Rs. 6.05, respectively.
Prior to this, knowledgeable officials had estimated that the price of HSD and gasoline would drop by Rs. 8 to Rs. 10 per litre, mostly as a result of decreased pricing on the global market.
According to the officials, during the previous two weeks, there had been a decrease in the international prices of gasoline and HSD.
Rupee Devaluation
But over that same time, the rupee lost value in relation to the US dollar, lessening the advantage of cheaper foreign costs for customers.
According to official figures used in pricing computations, HSD dropped in price by an average of $9 per barrel during the course of the week, from roughly $113 to $104.
In contrast, the cost of gasoline has decreased from $91 to $90, a dollar. In contrast, the value of the rupee decreased by Rs. 6 versus the US dollar, falling from Rs. 280 to Rs. 286.
According to the law, the government has already paid the maximum amount of Rs. 60 per litre in petroleum development levies (PDLs).
Commitments With IMF
According to commits made to the International Monetary Fund (IMF), the government’s budget objective for the current fiscal year is to collect Rs. 869 billion as PDL on petroleum products.
Despite a slow increase in petrol prices per litre and nearly constant prices in the first quarter of the fiscal year at Rs. 50 per litre.
PDL collected more than Rs. 222 billion in total during the first quarter, which concluded on September 30, 2023.
Currently, the government taxes gasoline and HSD at a rate of roughly Rs. 80 per liter.
The government charges Rs. 60 per litre as PDL on both petroleum products, even though there is no general sales tax on any of them.
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