While increasing petroleum levy to the maximum, the government on Sunday reduced prices of petroleum products by up to 1.3 per cent to partially pass on impact of declining oil prices in international market.
“On the recommendation of Finance Minister Mohammad Ishaq Dar, Prime Minister Nawaz Sharif has approved reduction in the prices of petroleum products for September,” an official statement said.
Sources said that crude prices had declined in the international market by about seven per cent over the past 30 days but the full impact could not be shared with consumers because of depreciation of rupee against the dollar and the increase in petroleum levy.
Mr Dar held the two parties organising sit-ins in Islamabad responsible and said: “POL prices would have been reduced further, had not the value of rupee depreciated during August due to the ongoing political situation.”
The sources said the government had increased petroleum levy by Rs1.87 per litre on petrol, Rs3.91 per litre on high octane blending component (HOBC) and 53 paisa per litre on high speed diesel.
The Apart from the Rs6 to Rs14 per litre petroleum levy, the government charges 16 per cent general sales tax on the prices of all oil products.