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ISLAMABAD: The government has cut gasoline prices for the month of May as crude prices have seen a sharp drop in the international market, a notification from the finance ministry said on Thursday.
The price of gasoline dropped to Rs81.58 after a reduction of Rs15, while the high-speed diesel rate dropped to Rs27.15 and dropped to Rs80.10.
According to the notification, kerosene oil and light diesel will now sell at Rs47.44 and Rs47.51 after a reduction of Rs30.01 and Rs15 in their prices, respectively.
The new prices will take effect from midnight, according to the notification.
On Wednesday, the Oil and Gas Regulatory Authority (Ogra) recommended to the government to cut oil prices to Rs44 per liter by May 2020, The News reported.
The regulator suggested that the price of diesel be reduced by Rs33.94 per liter (or 31.6%), gasoline by Rs20.68 / liter (21.4%), kerosene oil at Rs44.07 / liter (56.9%) and light diesel (LDO) for Rs24.57 / liter (39.3%).
It is worth mentioning that the government is also charging a 17% general sales tax (GST) on all petroleum products. Apart from this, the government is also collecting the oil tax (PL) on these products, which is taken directly from consumers.
The government, to cover the income deficit by March 2020, had increased the oil tax (PL) on these products. Diesel PL increased by 7.05 to Rs25.05 per liter.
Economist opposes lowering fuel prices
Leading economist Dr. Kaiser Bengali, however, has opposed the move to lower POL prices in the country.
“Domestic fuel prices should NOT be reduced, the surplus should be used to: (1) settle the circular debt, it will stabilize the tax base n (2) a lower GST rate of goods, it will boost industry and employment,” said Bengali in a statement on Thursday.
