ISLAMABAD, July 4: The federal government has issued a notification announcing a Rs1.97 per litre reduction in the petrol price and high-speed diesel rate.
According to the notification, the petrol price has been reduced by Rs1.97 per litre, bringing the new price to Rs297.53 per litre.
The price of high-speed diesel has also been cut by Rs1.97 per litre, with the new rate set at Rs309.50 per litre.
The revised prices will come into effect immediately, as per the official notification.
Earlier, the government had increased carbon tax on petrol and diesel by Rs five.
The rate of carbon tax on petrol and diesel will be applicable from today at 12 am.
As per the notification, the government has increased the carbon tax from Rs 2.5 to Rs 5. While the government has balanced the rise in the carbon tax by slashing the petroleum levy.
According to the notification, the carbon tax is also imposed on High Octane and Furnace oil by Rs 5. The real effect of the carbon tax increase will surface on the next announcement of petrol and diesel prices.
In other news, the federal government has established a Petroleum Prices Stabilisation Fund (PPSF) to help manage fluctuations in petroleum product prices.
The Ministry of Finance on Tuesday issued a notification creating a new head of account for the fund, following the federal cabinet’s approval on June 5.
According to the notification, all proceeds received under the Petroleum Prices Stabilisation Fund will be credited to the Public Account of the Federation under the major head “Special Deposit Fund.” A separate account head and object code have also been allocated for the fund.
The notification stated that the operational framework, including the rules and procedures for managing the fund, will be jointly developed by the Finance Division, Petroleum Division, and the Oil and Gas Regulatory Authority (OGRA) in line with legal and financial requirements. The necessary approvals for the mechanism will be obtained separately.
Copies of the notification have been sent to the Auditor General of Pakistan, Controller General of Accounts, Accountant General Pakistan Revenues, and the accountants general of Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan for implementation.
The Finance Division has also informed the State Bank of Pakistan (SBP), the Presidency, the Prime Minister’s Office, the Cabinet Division, the Ministry of Law and Justice, the Ministry of Energy (Petroleum Division), and all provincial governments about the establishment of the fund.