The federal government has reduced Rs. 7.06 at per litre across the country on Monday. The new rate for per litre petrol has been fixed at Rs. 74.52 from today. The decision was announced by the ministry of finance, after consultations with representatives of the International Monetary Fund, in a balancing act to share the drastic fall in international oil prices among consumers already hit badly by Coronavirus lockdown.
The decision to be effective till June 30th.
Under the announcement, the ex-depot price of petrol was fixed at Rs74.52 per litre from Rs81.58 per litre at present, showing a reduction of Rs7.06 or 8.65pc. Based on the existing tax rates and the PSO’s import cost, the petrol price should have come down by Rs13.30 per litre but the government decided to revise petroleum levy by Rs6.24 per litre. As such, the share of GST and petroleum levy now works out at about Rs40.45 per litre. The product is mostly used in private transport, small vehicles and two-wheelers.