PM announces Rs5 reduction in price of petrol
Earlier, PM Nawaz Sharif announced Rs 5 per liter reduction in petrol and diesel prices.
The government on Saturday increased the excise duty on petrol by Re 1 per litre and on diesel by Rs 1.50, the third increase this month, to mop up over Rs 3,200 crore in additional revenue.
It is pertinent to mention here that worldwide oil prices are trading at 12 year-low levels at around $30 a barrel but the government has not substantially passed the benefit of record low prices to the domestic consumers.
Taken together with the November 7, 2015 increase in excise duty on petrol of Rs 1.60 per litre and diesel by 30 paise, this is the fifth hike in levies this fiscal.
According to media reports government has reduced the reduced of Petrol to Rs. 5, High Octane Rs. 5, Kerosene Oil Rs. 5 and Light Diesel Rs. 5. He said that in percentage terms, the decrease is from 6.2 percent for high speed diesel and HOBC to 11.1 percent for the light diesel oil.
The increase in excise duty will fetch the government over Rs.3,200 crore during the remainder period of the fiscal.
“The weakening of the rand against the United States dollar increased the contribution to the basic fuels price on petrol, diesel, and illuminating paraffin by 49.43c/l, 37.85c/l, and 38.88c/l respectively, the department said”. This additional revenue will be used by the government to meet its budgetary deficit.
Similarly, on unbranded or normal diesel, total excise duty after including special excise will be Rs 17.16 per litre compared with the Rs 15.66 now.