The federal government on Friday decided to keep oil prices unchanged in a bid to provide relief to consumers in the holy month of Ramazan.
The Ministry of Finance in a statement said that in line with the vision of Prime Minister Imran Khan to provide relief to consumers in the holy month of Ramazan, the government has decided not to increase the prices of the petroleum products.
The implementation of this proposal requires an adjustment in the rates of petroleum levy on all petroleum products and a reduction in sales tax as well in case of kerosene oil and light diesel oil.
It is pertinent to mention that the government was not charging any petroleum levy (PL) on kerosene and light diesel oil. The cumulative revenue impact of the decision will be Rs4.8 billion.
The prices of petroleum products will be effective from May .
The price of petrol has been maintained at Rs108.56 per litre, High Speed Diesel Rs110.76 per litre, kerosene oil Rs80 per litre and Light Diesel Oil (LDO) Rs77.65 per litre.
Also read: Govt reduces petroleum prices by up to Rs2.32 per litre
The Oil and Gas Regulatory Authority (Ogra) had proposed a hike in prices of petroleum products effective from May 1.
Earlier, the government had reduced oil prices up to Rs2.32 per litre effective from April 16.
The government had reduced the price of HSD by Rs2.32 per liter, petrol by Rs1.79 per litre, kerosene oil by Rs2.06 per litre, and light diesel oil by Rs2.21 per liter.
The agriculture and transport sectors widely use HSD. Therefore, any increase in oil price in Pakistan will have a negative impact on these two sectors.
Ogra calculates ex-depot prices of petroleum products keeping in view the rate of petroleum levy and general sales tax.
Petroleum products are a major contributor to taxes as the government is currently charging double tax. It is charging a petroleum levy and general sales tax.