Government reduces prices of petroleum products for December

Islamabad (Nov 30, 2018) : The government has decided to reduce the prices of petroleum products by Rs.2 per litre, each for Petrol and Diesel. The prices of Kerosene and LDO will be reduced by Rs. 3 & Rs.5 per litre respectively.

Prices for the month of December shall therefore be as under:

These prices shall be applicable from 1st of December 2018 to 31st December 2018.

It may be added that OGRA works out the petroleum prices for a month on the basis of the prices of cargoes purchased for that particular month. The prices for December 2018 are accordingly based on the purchases made during the period from 10 October to 12 November, 2018. The average price of these cargoes remained $76.68/BBL for Petrol and $86.61 for HSD.

The government has substantially reduced the taxes/levies on petroleum products during the period September- November, 2018. During the month of November sales tax on MS Petrol and HS Diesel was 4.5% and 12% respectively, compared to 15% and 27.5% in May 2018, which means a reduction of 10.5% and 15.5% respectively.

Similarly petroleum levy on MS Petrol and HS Diesel which was Rs.10 and Rs.8 per liter in May has been reduced to Rs.6.15 and Rs.6.51 respectively.

The international prices of crude oil are on a declining trajectory. The government intends to provide relief to the consumers in the determination of final consumer prices, while keeping in view the revenue requirements.