Islamabad:
The Federal Government cut on Wednesday the price of oil derived products in RS2 per liter for the next fortnight. The new prices will be applicable as of May 1.
According to a notification issued by the Finance Department, the Government has decided to review the prices of oil products for the next fortnight, depending on the recommendations of OGRA and the relevant ministries.
According to the notification, gasoline will be sold at RS252.63 per liter after RS2 cut per liter. Similarly, high -speed diesel (HSD) will be negotiated at RS256.64 per liter with the decrease of RS2 per liter.
Before the review, gasoline was sold at RS254.63 per liter and the HSD to RS258.64 per liter. The notification of the Finance Division did not mention the price of querosene oil and the diesel oil oil.
Interestingly, the Government maintained oil prices without changes during the last fortnight despite a great decrease in the price in the international market. Consumers waited around RS8 due to liter relief, but the Government decreased their hopes and decided to finance Ballokistan development projects with oil revenues.
In mid -April, a presidential ordinance was issued that empowers the Federal Government to increase Levy of Petroleum Development (PDL) in oil products at will and eliminate the maximum ceiling that had limited it to RS70 per liter.
The ordinance abolished the fifth calendar for the tax on oil products, which authorized the Government to impose any tax in any case. The ordinance occurred when the Government increased PDL in oil products, instead of reducing oil prices after reduction in the global market.
High speed diesel is widely used in transport and agriculture sectors. Therefore, fluctuation in its price also contributes to inflationary in the country.
Gasoline is used in cars and bicycles and its demand had increased mainly due to the use of imported gases in the CNG stations in the province of Punjab.
