Govt Announces Massive Decrease in Petrol Prices
Introduction:
The government of Pakistan has recently announced a reduction in the prices of Light Diesel Oil (LDO) and Kerosene Oil, aiming to ease the financial burden on the general public. The decision, effective from midnight, is expected to remain in place for the next fortnight.
Reduction in Tariffs:
The reduction in tariffs for Light Diesel Oil (LDO) by Rs7.54 and Kerosene Oil by Rs9.86 demonstrates the government’s commitment to providing relief to consumers who depend on these fuels for various purposes. This reduction will particularly benefit low-income households and industries that rely on these fuels for their operations.
Petroleum Levy and Revenue Projection:
It is noteworthy that the government is charging a petroleum levy of Rs60 per litre on both Petrol and High-Speed Diesel (HSD). This levy is a key revenue source for the government and is projected to generate Rs936 billion in the current fiscal year, surpassing the budgeted target of Rs869 billion. This indicates the government’s efforts to effectively manage the country’s finances and ensure revenue sustainability.
Expected Impact:
The government expects that the reduction in the prices of petroleum products will lead to an increase in their sale price and consumption. This is crucial, as the sale of petroleum products witnessed a decline of 4% on a month-on-month basis in April 2024 and a 6% decline on a year-to-year basis. The reduction in prices is anticipated to stimulate demand, benefiting consumers and industries alike.
Conclusion:
The government’s decision to reduce the prices of LDO and Kerosene Oil is a commendable step towards providing relief to consumers. By managing petroleum prices and ensuring revenue collection, the government is demonstrating its commitment to economic stability and public welfare. This move is expected to have a positive impact on consumers and industries, ultimately contributing to the country’s economic growth.
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