The levy on petrol will remain at Rs 105.37 per litre, while the levy on diesel will remain at Rs 55.24 per litre.
Kerosene oil.
ISLAMABAD:
The federal government has increased the prices of kerosene and light diesel (LDO) while deciding to keep the prices of petrol and fast diesel unchanged by maintaining the tax on petroleum and providing subsidy to absorb the rising costs.
According to the Ministry of Power (Petroleum Division), the price of kerosene has been increased by Rs 39.20 per liter, fixing the new rate at Rs 358.01 per litre.
In a separate adjustment, the government also increased the price of light diesel by Rs 67.51 per litre. The new price of light diesel has been fixed at Rs302.52 per liter, against the previous price of Rs235.01 per litre.
At the same time, the government decided to maintain the existing oil tax on gasoline and diesel. The levy on petrol will remain at Rs 105.37 per litre, while the levy on diesel will remain at Rs 55.24 per litre.
Officials said that in order to keep petrol and diesel prices stable for consumers, the government will provide a subsidy of Rs 23 billion for a period of one week from March 14 to 20. Under the deal, the government will provide a subsidy of Rs 49.63 per liter on petrol and Rs 75.05 per liter on high-speed diesel.
The subsidy will be paid to oil marketing companies in the form of price differential claims to compensate them for the difference between market prices and retail rates maintained by the government.
The Power Ministry said the payments will be made through the Oil and Gas Regulatory Authority (OGRA), which will manage the disbursement of the Rs23 billion. The authority will also implement a mechanism for verification and auditing of invoices submitted by oil marketing companies before clearing the claims.
Meanwhile, the Finance Division obtained cabinet approval for the creation of a “Prime Minister’s Austerity Fund” to support such financial measures. The Economic Coordination Committee (ECC) approved the transfer of Rs27.10 billion to the fund, from which the grants will be disbursed.
