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Petrol, diesel prices slashed by Rs5 per litre

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The federal government has reduced the prices of petrol and diesel by Rs5 per litre.The announcement was made on Wednesday evening. The new prices take effect from midnight.

The Oil and Gas Regulatory Authority (Ogra) had recommended that petroleum prices be reduced by up to Rs11 per litre.

The new prices have been notified by the Finance Division.

Petrol has been reduced to Rs140.80 from Rs145.82 per litre.the new diesel price has been set at Rs137.62. It was being sold at Rs142.62. the prices of kerosene oil and light diesel oil have been reduced by Rs7 per litre. Kerosene oil will be available at Rs109.63 and light diesel oil at 107.06 per litre.

Petroleum Levy increased

The government has increased the petroleum development levy (PDL) on petrol and diesel. It will be collecting Rs13.62 per litre on petrol and Rs13.14 per litre on diesel.

The PDL on kerosene oil has been set at Rs5.91 and light diesel oil at 3.66.

In November when petroleum prices skyrocketed as a result of international oil price hike, the government had reduced the PDL to Rs5.

However, under a deal with the International Monetary Fund (IMF) it has promised to increase PDL by Rs4 every month, according to Finance Advisor Shaukat Tarin.

In its recent summary, Ogra had recommended to decrease petroleum prices by Rs11 per litre after its earlier recommendation of an Rs5 per litre reduction was rejected by the government on December 1.

Industry sources told SAMAA Money that they were expecting a decrease of Rs11 and Rs9 in the prices of petrol and diesel, respectively.

Meanwhile, the global market is currently witnessing a steady decline in the price of crude oil. In a month, the crude oil rates have fallen from $80 per barrel to $72 per barrel.

The government had increased the petrol price to Rs145.80 in November when world oil stood at $86.


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