Petrol and diesel prices to be reduced as the Finance Ministry has worked out the reduction in Mogas (Petrol) price after getting a summary from Ogra by Rs15 per liter and diesel by Rs33.99 per liter from July 16, 2022.
The new price of petrol has been presented at Rs219.70 per liter after raising up the petroleum levy (PL) byRs5 per liter to Rs15 per liter, from Rs10 per liter, and diesel Rs241.30 per liter after increasing the petroleum levy to Rs10 per liter from the existing Rs5 per liter.
However, without the increase of Rs5 per liter petroleum levy, the reduction in the price of diesel has been worked out by Ogra at Rs38.99 per liter and petrol at Rs20.07 per liter.
The prime minister wants to pass the reduction in prices of diesel and petrol on to consumers without the increase in the petroleum levy by Rs5 each. Petrol and diesel prices to be reduced.
Top sources say that the Finance Ministry’s top magnates want the prime minister to allow it to increase the petroleum levy by Rs5 per liter each on petrol and diesel as the government is bound to increase the petroleum levy on both the POL products by Rs50 each gradually in the current budgetary year to achieve the revenue target of Rs850 billion.
The Finance Division is of the view that the massive reduction in crude oil prices in the international market has provided the space to increase the petroleum levy apart from reducing the POL prices from July 16, 2022.
However, the federal cabinet that meets on July 15 (tomorrow) will make the final decision about the decrease in the POL prices after getting the input of the cabinet members of allied parties.
It is to be noted that in the existing price of diesel, there is a petroleum levy of Rs5 per liter and in the price of petrol, the petroleum levy stands at Rs10 per liter and in the price of kerosene oil, PL stands at Rs5 per liter.
In the price of furnace oil which is used in IPPs for power generation, a massive relief has been worked from Rs12,981 per ton to Rs141,360 from Rs154,341 per ton. There is no petroleum levy on furnace oil.
