The Ministry of Finance has announced a reduction of Rs. 1.77 per liter in the price of diesel, while deciding to maintain the price of petrol. As per media reports the price of Kerosine oil has been reduced by Rs. 1.35 per liter, while the price of light diesel oil has been reduced by Rs. 2.12 per liter.
The Ministry of Finance has stated that the price of petrol will remain at Rs. 279.75, while the new price for diesel will be Rs. 285.56 per liter. It is related to mention that the new prices will be effective from March 16th to March 31st.
In accordance with the officials, it has been revealed that the premium on petrol income has increased from $10.45 per barrel to $12.15 per barrel as of February. However, the exchange rate and global market keep oil prices within a range, while the premium on diesel income remains steady at $6.50 per barrel.
Earlier, we reported that the government can maintain the prices of both products through adjustments in the exchange rate and the International Monetary Fund (IMF) stabilization margin. Similarly, there is no possibility of fluctuations in the prices of kerosene oil and light diesel as well.
The government is already levying a development levy of Rs. 60 per liter on both petrol and diesel, which is the maximum limit under the law. When deciding these prices, the government also considers the factors like the needs of Pakistan State Oil, taxes, and global oil prices. And this time, geopolitical tensions and supply concerns have driven up oil prices by nearly 10% in the first two months of 2024.
Currently, the government is imposing approximately Rs. 82 per liter tax on both petrol and diesel. Although there is zero General Sales Tax (GST) on all petroleum products, the government is collecting Rs. 60 per liter petroleum levy on both products.
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