ISLAMABAD: The Ministry of Energy (Petroleum Division) has recommended a drastic cut of Rs22.94 in the price of high-speed diesel, including a Rs3.24 decrease in petrol prices to Rs92 per litre.
The interim government had kept prices of petroleum products unchanged and recently the petroleum minister had announced it would rationalize prices, reports Express Tribune.
Currently, the government is levying 22 percent in general sales tax on high-speed diesel and by proposing a drastic cut in price would translate to adjusting the tax rate.
There is a high probability that the finance ministry would resist this move of price cut recommendation, which would deprive it of a significant amount in tax revenue.
However, Oil and Gas Regulatory Authority has proposed a decrease of Rs6 in the price of HSD to Rs106 per litre, Rs2 in the price of petrol to Rs93 per litre, 30 paisa in kerosene oil to Rs83.25 per litre and 70 paisa in the price of light diesel oil to Rs76 per litre.
In August, Ogra had recommended an increase of Rs2 in prices of high-speed diesel, Rs2.50 in petrol, Rs5 in kerosene oil and Rs6 in light diesel oil.
The rise in global crude oil prices, however, was not passed onto consumers by the interim government for August 2018.
