WASIM IQBAL
ISLAMABAD: The government Saturday reduced per litre prices of petroleum products up to Rs 6.35 per litre for the 24 days of July.
The ministry of energy has issued a notification regarding downward monthly revision of petroleum prices, effective July 8 till July 31, 2018.
The caretaker government reduced price of petrol by Rs 4.26 per litre to Rs 95.24. The supply of domestic gas has been suspended to CNG retail outlets various parts of country. The demand of petrol, therefore, has increased manifold.
The price of high speed diesel (HSD) has been reduced by Rs 6.37 per litre to Rs 112.94 per litre. This product is widely used in transport and agriculture sectors.
The price of superior kerosene oil (SKO) has been reduced by Rs 3.74 per litre to Rs 83.96 per litre. Kerosene is also being mixed in high speed diesel illegally and therefore the prices of kerosene are kept high.
Light diesel oil (LDO) is used in industry. Its price has been reduced by Rs 5.54 per litre to Rs 75.37 per litre.
Syed Ali Zafar, Federal Minister for Energy in a statement Saturday said that the federal government has decided to reduce petroleum prices in order to provide relief to general public.
As a result of reduction in petroleum prices, the federal government, he said would suffer an estimated loss in revenue of Rs 10 billion.
The Cabinet, he said had decided that sales tax rates would be reduced from 17 to 12 percent for motor spirit and kerosene oil, from 31 percent to 24 percent on High Speed Diesel and from 17 to 9 percent on Light Diesel Oil.
According to an announcement of the FBR late Saturday that the Supreme Court during the course of hearing held on 5th July, 2018 relating to suo motu notice of increase in petroleum prices directed the federal government to reconsider the matter in order to provide all possible relief to the general public.
In view of the directions of the Supreme Court, the FBR stated that the matter has been reconsidered and the Cabinet has decided that sales tax rates be reduced from 17 percent to 12 percent for motor spirit and kerosene oil, from 31 percent to 24 percent on High Speed Diesel and from 17 percent to 9 percent on Light Diesel Oil. The federal government is confident that the relief in petroleum prices will not only provide much needed respite to masses but also reduce the cost of production and give a boost to the economic activity.
The caretaker government, Syed Ali Zafar said was fully aware of the problems being faced by the people and was determined to reduce their sufferings despite the present financial constraints.
The reduction in prices of petroleum products will be effective from 12:00 midnight, the minister concluded.
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S.No. Description PCT heading Rate
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1. Motor spirit excluding HOBC 2710.1210 12%Ad valorem
2. High speed diesel oil 2710.1931 24% Ad valorem
3. Kerosene 2710.1911 12% Ad valorem
4. Light diesel oil 2710.1921 09% Ad valorem
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