ISLAMABAD - The caretaker government late on Saturday reduced the prices of petroleum products by lowering the general sales tax that would cost the national exchequer Rs10 billion in terms of revenue collection.

Caretaker Minister for Energy Syed Ali Zafar said that federal government has decided to reduce petroleum prices in order to provide relief to the general public. The government has reduced the GST from 17 percent to 12 percent on motor spirit and kerosene oil, from 31 percent to 24 percent on high-speed diesel and from 17 percent to nine percent on light diesel oil.

The petrol price has been reduced by Rs4.26 per litre and the new price would be Rs95.24 per litre. The price of high-speed diesel has been slashed by Rs6.37per litre to Rs112.94 per litre. Similarly, the kerosene oil price has been decreased by 3.74 per litre to 83.96 per litre.

Meanwhile, the price of light diesel oil has been reduced by 5.54 litre to Rs75.37 per litre.

The reduction in prices of petroleum products will be effective from 12 midnight.

Zafar said that the caretaker government was fully aware of the problems being faced by the people and was determined to reduce their sufferings despite the present financial constraints. He further said that the federal government was confident that the relief in petroleum prices will not only provide the much-needed respite to the masses but also reduce the cost of production and give a boost to economic activity. As result of the reduction in petroleum prices, the federal government would suffer an estimated Rs10 billion in terms of revenue, he said.

The caretaker government last week enhanced the prices of petroleum products massively for the ongoing month of July due to increase in oil prices in the international market and depreciation of Pakistani rupee against the dollar. The caretaker government had approved the OGRA proposals to increase the price of petrol by Rs7.54 per litre, high-speed diesel by Rs14.00 per litre, kerosene oil by Rs3.36 per litre and light diesel oil by Rs5.92 per litre. The Supermen Court had expressed displeasure over the massive taxation on the oil prices.