The federal government on Friday increased the price of petrol by
According to details, the real impact of increase in petrol was
According to a notification issued by the Finance Division, the price of petrol has been increased from existing
The price of kerosene oil has been hiked by
The price of light diesel oil has risen by
After the increase, the government will continue charging
The government had last month reduced prices of all petroleum products except high speed diesel to partially pass on the impact of massive international price reduction to the masses.
The government has already increased the general sales tax (GST) on all petroleum products to a standard rate of 17pc across the board to generate additional revenues. Until January last year, the government was charging 0.5pc GST on light diesel oil (LDO), 2pc on kerosene, 8pc on petrol and 13pc on HSD.
Besides the 17pc GST, the government has almost quadrupled the rate of petroleum levy on HSD and petrol to
Over the last many months, the government had been increasing petroleum levy rates to partially recoup a major revenue shortfall faced by the FBR. The levy remains in the federal kitty unlike GST that goes to the divisible pool taxes and thus about 57pc share is grabbed by the provinces.
Average petrol sales are touching 700,000 tonnes per month against the monthly consumption of around 600,000 tonnes of diesel. However, the sales of petrol had dropped in recent weeks due to the coronavirus lockdown. The diesel consumption had also dropped after the lockdown but has since picked up owing to wheat harvest. The sales of kerosene oil and LDO are generally less than 11,000 and 2000 tonnes per month.
© Pakistan Press International, source