The federal government decreased the price of petroleum products by up to Rs 7 per litre, effective December 16, 2021. On Wednesday, the Finance Division also issued a notification in this regard.
The government has lowered the price of petrol by Rs 5 per litre, high-speed diesel by Rs 5, kerosene by Rs 7, and light diesel oil by Rs 7.01 per litre, according to a notification.
Petrol will be priced at Rs 140.82 per litre, while high-speed diesel and kerosene will be priced at Rs 137.62 and Rs 109.53 per litre, respectively.
The new petroleum product rates will go into effect from 16 December.
Following the recommendations of the Oil and Gas Regulatory Authority (OGRA), the federal government decreased prices. For the rest of December, OGRA suggested a price reduction of up to Rs 8 to 10 per litre in petroleum products.
However, rather than passing on the full benefit of lower international oil prices, the government has raised the GST on petrol from Rs 2.34 per litre (1.63 percent) to Rs 6.41 per litre (4.77 percent). Similarly, the dealer margin on petroleum was raised by Rs 0.99 per litre, while the OMC margin was raised by Rs 0.71 per litre.
According to sources, the international market price of petroleum products was $74 per barrel, down 10% from the previous month.
It’s worth noting that Prime Minister Imran Khan rejected the OGRA report on December 1 and decided to keep the petrol prices the same for the following 15 days.