The government on Tuesday decided to decrease the costs of petrol and high-speed diesel (HSD) by Rs1.5 per litre from Sept 1 to “provide maximum relief” to people.
It also decreased the worth of kerosene by Rs1.5 which of sunshine diesel fuel (LDO) by Rs1 per litre, respectively.
According to a notification issued by the Finance Division, the new price of petrol are going to be Rs118.3 per litre, HSD are going to be Rs115.03 per litre, kerosene are going to be Rs86.80 per litre and LDO are going to be Rs84.77 per litre.
The rates are reduced despite fluctuations within the prices of petroleum products within the international market and anticipated increase within the future, the govt said.
“The government is firmly committed to make sure stability in prices of essential commodities and has sustained the worth pressure in line with its commitment to the commoner ,” it added.
It noted that the petroleum levy was kept at a minimum which was a “clear reflection that the govt is fully cognisant” of the impact of upper petrol prices on basic commodities.
According to Petroleum Division sources, the Oil & Gas regulatory agency (Ogra) calculated Rs3.50 per litre reduction within the ex-depot price of petrol and about Rs5 per litre decrease within the ex-depot price of HSD.
Likewise, the ex-depot price of sunshine diesel and kerosene oil was calculated to travel down by Rs2 and Rs3 per unit, respectively.
The price cuts were figured out due to lower international oil prices albeit the rate of exchange had deteriorated over the past 15 days of August.
As of now, the govt is charging 17 per cent general nuisance tax on HSD, followed by 10.54pc on petrol, 6.70pc on kerosene and 0.20pc on light diesel. the quality GST rate is 17pc, which suggests the govt is foregoing significant revenue flow.
The government is additionally charging a negligible Rs2.05 per litre petroleum levy on HSD and 24 paisa per litre on light diesel and 0 on petrol and kerosene. this suggests the govt is additionally losing substantial revenue on a solely federal tax.
On Assumption , the govt had kept unchanged the worth of petrol at Rs119.80 per litre which of HSD at Rs116.53 per litre. On the opposite hand, it had increased the ex-depot price of kerosene by 81 paisa per litre to Rs88.30. Also, the ex-depot price of sunshine diesel fuel was increased by Rs1.10 per litre to Rs85.77.
