ISLAMABAD - The federal government on Saturday announced a major cut in fuel prices following the directives of Prime Minister Imran Khan. The prices of petroleum products were reduced up to Rs7 per litre for the month of March.

The move would provide much-needed relief to the masses facing high inflation rate for the last few months. The Ministry of Finance announced the reduction in prices of petroleum products for ongoing month. The government reduced the prices of each petrol and High Speed Diesel by Rs5 per litre. Similarly, prices of Kerosene oil and Light Diesel oil have also reduced by Rs7 per litre each.

The Oil and Gas Regulatory Authority had proposed a decrease of Rs7.23 per litre in the price of high speed diesel (HSD) and Rs5.79 per litre cut in price of petrol for March. However, the government reduced the prices of petrol by Rs5 per litre and HSD by Rs5 per litre.

Petrol price has gone down from Rs116.6 per litre to Rs111.6 per liter, and HSD price reduced to Rs122. 26 per litre from the Rs127.26 per litre.

Meanwhile, price of kerosene oil gone down to Rs92. 45 per litre from Rs99. 45 per litre and light diesel oil price decreased to Rs77.51 per litre from previous Rs84.51 per litre for the month of March.

The Ogra calculated price on the basis of Petroleum Levy of Rs18 per litre on the HSD, Rs15 per litre on petrol, Rs6 on kerosene oil, and Rs3 on LDO. The government passed on the impact of declining oil prices to the people. The benchmark International Brent price had recently reduced from $60 a barrel to $51 a barrel, down 18.33 percent.

The decision would go a long way in bringing down the rate of inflation because fuel is the primary source of transportation and agriculture in the country. The government had already increased the general sales tax (GST) on all petroleum products to standard rate of 17pc across the board to generate additional revenues. Over the last many months, the government had increased petroleum levy rates to partially recoup a major revenue shortfall faced by the FBR.