ISLAMABAD: The Pakistan Interim Government It cut the rates of petrol and high speed diesel (HSD) by Pakistani rupees (PKR) 14 and PKR 13.5 per liter respectively for the next fortnight, Dawn News reported.
It reported, citing a notification from the Ministry of Finance of Pakistan, that the new petrol prices are PKR 267.34 and PKR 276.21 for HSD.
Meanwhile, kerosene and light diesel prices were reduced by PKR 10.14 and PKR 11.29 per liter respectively to PKR 191.02 and PKR 164.64.
Informed officials had earlier said that prices of major petroleum products would fall by more than PKR 10 per liter each on December 15 during the next fortnight, mainly due to a decline in the international market.
The Pakistan-based news daily reported that international prices of both oils had in the last fortnight declined by almost five per cent, while the rupee had also gained marginally against the US dollar, resulting in a drop in domestic prices for consumers.
The State Bank reported that the dollar had stabilized at PKR 283.51 on Thursday after losing against the local currency. Traders said the market remained calm even though importers faced difficulties in opening their letters of credit.
Dawn News reported, citing a press release from the State Bank of Pakistan, that foreign exchange reserves increased by $21 million to $7.04 billion during the week ending December 8.
The central bank has been buying dollars in the interbank market to keep its reserves above the $7 billion level. The International Monetary Fund (IMF) has been insisting on increasing its reserves, but massive debt service reduces its reserves.
Furthermore, the government has already reached the tax of PKR 60 per liter of oil, the maximum limit allowed by law, Dawn News reported.
Dawn News reported that the Pakistan government has set a budget target to collect PKR 869 billion as petroleum tax (PL) during FY24 conducted with the IMF, but now expects the collection to cross PKR 950 billion by the end of June.
PL’s total collection surpassed PKR 222 billion in the first quarter ending September, even though its per-liter rates rose slowly over the period for gasoline and remained almost unchanged.