Federal Board of Revenue (FBR) has reduced General Sales Tax (GST) on petrol to 0%. According to a notification, SRO 1579 (I)/2021, the GST on the petrol was 1.43% in November 2021, however, it has been taken down to 0% from December 7, 2021.
However, the GST on other petroleum products has been increased. Henceforth, the tax on High-Speed Diesel (HSD) is increased now 7.20% from 6.75% . Meanwhile, the Sales tax on Kerosene Oil is hiked from 6.70% to 8.19%. And the new tax on Light Diesel is 0.46% from previous 0.20%.
Petrol Price Remained Unchanged
On November 30th, the government had decided to keep the petrol prices unchanged for the next 15 days. We thought the prices were going up this time before coming down in the next revision. But the government has played it cool and maintained the prices till Dec 15.
Current Prices
Petrol is currently at Rs. 145.82 per litre.
The current rate of High-Speed Diesel (HSD) is Rs. 142.62 per litre.
The Kerosene Oil price is Rs. 116.53 per litre.
Lastly, the rate of Light Diesel Oil is Rs. 114.07 per litre.
The decision was taken after the international petrol prices dropped by almost 10 USD per barrel last month. However, under an agreement with IMF, the government has agreed to increase Petrol Levy by Rs4 on monthly bases. Meanwhile, the prices of petrol in global market has once again saw a slight increase today, hence, it is yet to see what will government do. The people are hoping for reduction in prices as it will be a huge relief for the inflation-hit people of Pakistan.
The government revises the petrol prices after every 15 days, it means the government will take a decision on the prices after a week. The reduction of GST could mean that the price of petrol may come down, which is the most used commodity among petroleum goods.
So, hope for the best and fingers crossed till next week.
