ISLAMABAD: The ministry of finance has announced the new prices of petroleum products for the month of May 2018 and increased petrol by Rs1.70 to Rs87.70 per liter. Similarly, high speed diesel increased to Rs98.76, kerosene Rs79.87 and light diesel oil to Rs68.85.
The government has absorbed hike in prices of petroleum products through reduction in sales tax and passed half of the increase to end consumers.
The Federal Board of Revenue (FBR) on Monday also issued SRO 560(I)/2018 to reduce the sales tax rates on petroleum products effective from May 01, 2018.
A massive sales tax rate has been cut on petrol that is reduced to 15 percent from 21.50 percent.
Similarly the sales tax rates for kerosene and light diesel oil have been reduced to 12 percent and 11.50 percent from 17 percent and 16.50 percent, respectively. The sales tax rate has been kept unchanged at 27.50 percent.
