Petroleum products are set to get cheaper in Pakistan as the country's regulatory body is mulling a cut in the prices starting May 1, 2020, according to a report in Dawn.
The Oil and Gas Regulatory Authority (OGRA) is considering slashing prices of various products' by up to 57 percent, based on existing tax rates. This comes amid the plunging oil prices in the international markets.
Accordingly, the reduction would work out to about Rs 33.94 and Rs 20.68 per litre reduction in the prices of high-speed diesel and petrol, respectively, an official told the publication.
The report noted that a decision in the matter would be taken by OGRA following consultation with the International Monetary Fund (IMF).
The general sales tax (GST) levied on all petroleum products in the country has already been raised to a standard rate of 17 percent, the move being aimed at generating additional revenues. However, as per the report, until January 2019 the government was charging GST at the rate of 0.5 percent on light diesel oil, 2 percent on kerosene, 8 percent on petrol and 13 percent on high-speed diesel.
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Because of their growing consumption in Pakistan, petrol and high-speed diesel are two major revenue sources for the government. However, amid the ongoing lockdown due to the COVID-19 pandemic, the consumption of petroleum products in the country has dropped, leading to a loss in revenue for the state.Track this blog for LIVE updates on the COVID-19 pandemic