By Staff Reporter
ISLAMABAD: The government cut petrol and diesel prices by Rs2 per liter on Wednesday, a marginal reprieve for consumers as it siphoned savings from falling global oil costs through higher taxes to shore up revenue.
The Finance Division announced petrol will now cost Rs252.63 per liter, while high-speed diesel (HSD) drops to Rs256.64. Kerosene and light diesel prices were unchanged. The move follows a controversial amendment to fuel tax laws last month that allowed Islamabad to raise levies and avoid steeper consumer price cuts.
The government amended the Petroleum Products Levy Ordinance last month to hike the maximum tax on fuel sales to Rs80 per liter from Rs70. Without the change, prices would have fallen by Rs10 per liter.
The decision effectively clawed back savings from a near 15 percent slide in crude in April, which dragged global oil prices to almost 3-1/2 years low of $63.12 a barrel
Prime Minister Shehbaz Sharif earlier this month said additional levy revenue would fund road projects Balochistan, home to key coalition partner.
Meanwhile, margins for oil marketers (OMCs) and dealers were unchanged at Rs7.87 and Rs8.64 per liter, despite a lower freight adjustment rate of Rs6.30 versus Rs6.89.
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