Islamabad-The Federal Government has reduced the price of High Speed Diesel (HSD) by Rs.2.40 per litre while the price of Petrol will remain unchanged for the first 15 days of October. The Federal Government has decided to reduce the price of High Speed Diesel by Rs2.40, not to change the prices of MS Petrol, Kerosene Oil and Light Diesel. These prices will be effective from 1st October 2020, said a notification issued by Finance Division.  Meanwhile the government also increased the price of indigenous LPG by 2.45 per cent to Rs1,416.29 per 11.8/kg cylinder for October 2020. 

It is worth to mention here that for the month of September Oil and Gas Regulatory Authority (Ogra) had proposed the government to reduce the prices of petrol and HSD by for the first half of October 2020. The authority had also asked the government to keep the Kerosene oil and Light Diesel Oil (LDO) prices unchanged. 

As per the new announcement the petrol price will remain unchanged at Rs103.97 per litre, while the price of High Speed Diesel has been reduced to Rs104.06 per litre from the earlier Rs106.46 per litre. The Kerosene price will also remain unchanged at Rs65.29 per litre and LDO at Rs62.86 per litre for the next 15 days. It is worth mentioning that the government is charging 17 per cent general sales tax (GST) on all petroleum products. Apart from it, the government is also collecting petroleum levy (PL) on these products, which is directly taken from consumers. The government will charge Rs30 per litre on HSD, Rs27.32 on Petrol, Rs11.43 on Kerosene and Rs 9.44 on LDO. In September also, the government instead of providing the benefit of lowering international oil prices to the consumers and reducing the POL prices, it had increased PL by up to Rs8.07 per litre on Petroleum Products for the remaining days of September.

In September Petroleum Levy on petrol had been increased by Rs6.29 per litre from Rs21.70 per litre to Rs 27.99 per litre. Similarly Petroleum Levy on High Speed Diesel (HSD) was increased by Rs8.07 per litre from Rs21.88 per litre to Rs29.95 per litre, Light Diesel oil by Rs4 per litre from Rs2.41 per litre to Rs6.41 per litre and E-10 Gasoline by Rs5.34 per litre from Rs20 per litre to Rs26.44 per litre. On September 1st, 2020 levy on Kerosene Oil was Rs7.23 per litre which increased Rs4.29 per litre to Rs11.52 per litre.

Under new rates, the LPG price has been increased by Rs2.87 per kg to Rs120 per kg for October from the September price of Rs117.15 per kg. As per notification issued by Ogra the price of indigenous LPG has been increased by Rs33.91 per 11.8kg cylinder from Rs1,382.38 per cylinder in September to Rs 1416.29 per cylinder. The new prices are effective from October 1.