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Thursday March 28, 2024

Diesel, kerosene prices reduced,petrol price remains the same

By Ishrat Hyatt
January 01, 2016

High Speed Diesel to sell at Rs80.79 per litre, kerosene at Rs48.25 per litre, Light Diesel Oil at Rs44.94 a litre; petrol and HOBC continue to sell at Rs76.26 and Rs80.66 per litre respectively

ISLAMABAD: The government on Thursday announced reduction of Rs3 per litre in the prices of diesel and Rs8.07 per litre in kerosene and kept the prices of petrol and High Octane Blending Component (HOBC) unchanged with effect from today (Friday).

It also announced reduction of Rs8.29 per litre in prices of Light Diesel Oil (LDO).

Minister for Finance Senator Ishaq Dar announced the decision in order to provide relief to the public.

The new prices were approved by Prime Minister Nawaz Sharif in consultation with the finance minister.

The Finance Ministry notified the new prices under which High Speed Diesel (HSD) prices were reduced from Rs83.79 per litre to Rs80.79/litre, kerosene from Rs56.32 per litre to Rs48.25 per litre and Light Diesel Oil (LDO) from Rs53.23 per litre to Rs44.94 a litre.

Petrol and HOBC prices were kept unchanged and will remain at Rs76.26 and Rs80.66 per litre respectively.

Independent economists say that owing to the falling oil prices on the international market, the government should have passed its benefit on to the domestic consumers with bigger proportion in all categories of petroleum products; however, this decline in some categories will help in reducing inflationary pressure in economy and benefit the general public and industrial sector too.

Some independent economists say the government has introduced ‘hidden taxes’ on furnace oil on the domestic market despite the fact that oil prices are falling internationally.

It has quietly levied regulatory duty of 7 percent, statutory duty of 5 percent and 20 percent GST on furnace oil that has increased its price on the market.