Massive cut in petrol price on cards

In a bid to provide relief to the masses, the federal government is likely to further reduce the prices of petrol and high speed diesel (HSD).

According to sources, the prices of petroleum products are estimated to be reduced by Rs10 per liter from September 15.

Sources say that in the last 15 days, the prices of petrol and high-speed diesel in the international market have come down by about $5 per barrel.

Due to the aforementioned cut in the international prices, the petrol and high-speed diesel are expected to be cut by Rs10-11 per litre depending on the final exchange rate calculation and current tax rates.

However, the government may increase the rate of petroleum levy by Rs5 per liter to partially meet the FBR’s revenue shortfall of Rs100 billion in the first two months of the current financial year and in this case the prices of petroleum products will be reduced by Rs5 to Rs6 per liter.

The government had raised the maximum limit of petroleum levy to Rs70 per litre in the next financial year to raise Rs1.28 trillion.

At present, the government is charging about Rs78 per liter tax on petrol and HSD.