Islamabad - While rejecting a summary of the OGRA proposing a slash in prices of petrol and high-speed diesel, the government on Sunday announced to keep prices of petroleum products unchanged for the month of May.

Finance Minister Ishaq Dar, while announcing the prices of petroleum products for the period starting from May 1 until midnight on May 31, said that the Ministry of Petroleum and Natural Resources and the OGRA had recommended a decrease of Rs1.20 per litre in the price of MS 92 RON petrol, and Rs1.10 per litre in the price of High-Speed Diesel (HSD). He said that it had also been proposed for an increase of Rs15.19 per litre in the price of kerosene oil, Rs10.65 per litre in the price of Light Diesel Oil (LDO) for the month of May.

The OGRA had recommended decreasing the price of petrol from current Rs74 per litre to 72.80 per litre; HSD from Rs 83 per litre to Rs81.90 per litre. With the prices unchanged, the prices of petrol per litre will stay at Rs74, HSD at Rs83, while Kerosene oil and LDO at Rs 44 per litre.

Dar said that in line with the prime minister’s directives to provide maximum relief to the common man, and keeping in view that kerosene oil and LDO was used by the low-income group, it has been decided to maintain the prices of the two petroleum products at the current level till May 31.

Meanwhile, the government issued a new SRO on Sunday, increasing the GST on HSD from 29.5 percent to 33.5 percent and GST on Motor Spirit excluding High Octane Blended Component (HOBC) from 15.5 percent to 20 percent. The GST on kerosene and LDO will stay zero. The standard GST rate is 17 percent.

In order to maintain the prices of both kerosene oil and LDO at current levels, the government will be forgoing all applicable taxes and duties on these petroleum products.

In the case of kerosene oil, a government subsidy will be provided to maintain the price at the current level. The finance minister said that the government has absorbed a significant impact of price increases since April 2016 and has suffered a considerable loss in revenue.