ISLAMABAD - Instead of providing the entire relief of lowering international oil prices, the government has decided to reduce the prices of petroleum products by Rs 5 per litre each for Petrol and HSD for the last fortnightly of December.

“The government has decided to revise the existing prices of petroleum products in view of the declining price trend of petroleum products in global market and transform the impact to the masses,” said a notification issued by the Finance Division here. The new prices effective from 16th December, 2021 to 31st December 2021.

As per the notification, the prices of Petrol and High Speed Diesel has been decreased by Rs 5 per litre each. The price of Kerosene (SKO) has been decreased by Rs 7 per litre, while for Light Diesel Oil (LDO) it has been decreased by RS 7.01 per litre. 

The OGRA had recommended a decrease of up to Rs 10.77 per litre in the price of MS Petrol, however, the government has decrease it only by Rs 5 per litre. Instead of passing on the entire relief of downing international oil prices, the government has increased GST on Petrol by Rs 4.07 per litre from Rs 2.34 per litre (1.63%) to Rs 6.41 (4.77%). Similarly, dealer margin on petrol was increased by Rs 0.99 per litre, while OMC margin was increased by Rs 0.71 per litre.

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On HSD also OGRA had recommended reduction of around Rs 7.73 per litre. However, the government has decreased it only by Rs 5 per litre and adjusted the remaining in GST and Petroleum Margin. General Sales Tax has been increased by Rs 1.19 per litre from Rs 10.49 per litre (7.37%) to Rs 11.68 per litre (9.08%).

After the decrease the price MS petrol will decrease to Rs. 140.82 from the current Rs 145.82 per litre. HSD price will go down to Rs. 137.62 per liter from the existing Rs 142.62 per litre. Kerosene (SKO) will decrease to Rs. 109.53 per liter from the existing Rs 116.53 per litre. Light diesel oil will go down to Rs. 107.06 per liter from the current Rs 114.07 per litre.