There will be reduction in petroleum products prices: Finance Division

ISLAMABAD: As the oil prices in the international market have declined, the Finance Division announced to reduce the prices of petroleum down by 5.8% for the month of September. The prices have been cut down to Rs113.24 per litre from Rs117.83, from September 1.

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Similarly, the price of high-speed diesel (HSD) reduced by Rs5.33 per litre, now costing Rs127.14 per litre as compared to the previous rate of Rs132.47. The new reduced purchasing price has been impacted by taxes and distribution charges.

The average purchase price of petrol, inclusive of customs duty, over the last imported period has been Rs71.89 per litre and that of HSD has been Rs82.06 per litre prior to taxes and cost of distribution.

The price of kerosene has dropped by Rs4.27 per litre to Rs99.57 per litre, which was Rs103.84 per litre previously, while in the case of LDO the reduction is of Rs5.63 per litre to Rs91.89 from Rs97.52 per litre by the government.

The full impact in the price of kerosene and light diesel oil (LDO) has been transferred to end consumers.

In a statement issued by the Finance Ministry, it has been clarified that the oil price calculation procedures are determined by OGRA, who use actual orders placed by the Pakistan State Oil for HSD and petrol. Pre-defined costs like freight, port handling and oil marketing company/retailer margins are then added by OGRA.

For three months, the general sales tax has been fixed at 17%. In the fiscal year 2015-16, it had gone to as high as 71% on HSD. Besides, the Petro­leum Dev­elop­­ment Levy is also fixed. So, any variation in the purchase price of PSO over the last imported period is notified by OGRA.

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