The tax on petrol will remain at Rs 105.37 per litre, while the tax on diesel will remain at Rs 55.24 per litre.
Kerosene oil.
ISLAMABAD:
The federal government has increased the prices of kerosene and light diesel fuel (LDO), while deciding to keep gasoline and high-speed diesel prices unchanged by maintaining the petroleum tax and providing a subsidy to absorb the rising costs.
According to the Ministry of Power (Petroleum Division), the price of kerosene has been increased by Rs 39.20 per liter, setting the new price at Rs 358.01 per liter.
In a separate adjustment, the government also increased the price of light diesel by Rs 67.51 per litre. The new price of light diesel has been fixed at Rs 302.52 per litre, as against the previous price of Rs 235.01 per litre.
At the same time, the government has decided to maintain the existing petroleum tax on gasoline and diesel. The tax on petrol will remain at Rs 105.37 per litre, while the tax on diesel will remain at Rs 55.24 per litre.
Officials said that to keep petrol and diesel prices stable for consumers, the government will provide a subsidy of Rs 23 billion for a one-week period from March 14 to 20. Under this agreement, the government will pay a subsidy of Rs 49.63 per liter for petrol and Rs 75.05 per liter for high-speed diesel.
The subsidy will be paid to oil marketing companies in the form of differential price claims to compensate them for the difference between market prices and retail rates maintained by the government.
The Power Ministry said the payments will be made through the Oil and Gas Regulatory Authority (OGRA), which will be responsible for the disbursement of the Rs 23,000 crore. The authority will also implement a mechanism for verification and auditing of invoices submitted by oil marketing companies before settling claims.
Meanwhile, the Finance Division has secured cabinet approval for the establishment of a “Prime Minister’s Austerity Fund” to support such financial measures. The Economic Coordination Committee (ECC) approved the transfer of Rs 27.1 billion to the fund, out of which subsidy payments will be made.
