No change in prices of petroleum products in January: govt
To provide relief to the masses, Finance Ministry will bear a revenue loss of around Rs. 4 billion.
ISLAMABAD (Dunya News) - Finance Minister Senator Ishaq Dar on Saturday announced the government’s policy regarding petroleum products prices for the month of January 2017.
He said that Ministry of Petroleum & Natural Resources and the Oil and Gas Regulatory Authority (OGRA) has recommended an increase in prices from 1st January 2017 by 0.5% in petrol, 5.2% in high speed diesel, 16% in kerosene oil and 8% in light speed oil with effect from 1st January 2017 which work out to be Rs. 0.31 per liter in petrol, Rs. 3.94 per liter in HSD, Rs. 3.48 per liter in light diesel oil and Rs.6.93 per liter in kerosene oil.
The proposed increase in prices of kerosene, light diesel and petrol were based on the reduced Sales Tax rates on these three petroleum products. In case the full sales tax at 17% is levied on these products, the increase in these products work out to be Rs. 14.31 per liter in kerosene oil, Rs. 10.11 per liter in LDO, and Rs. 1.77 in petrol.
"In order to maintain stability since April 2016, prices have been maintained despite fluctuation in international prices and the government has been absorbing the negative financial impact due to Government’s decisions for not passing increases to the end consumers. Only partial increase in MS Petrol and HSD of what had been recommended by OGRA was passed on to the end consumers for only the month of December 2016," the minister stated.
In line with the Prime Minister’s instructions to provide maximum relief to the common man and keeping in view that kerosene oil and LDO is used by the low income people, it has been decided to maintain the prices of kerosene and LDO at current level for the entire month of January 2017.
It has also been decided that the prices of MS RON 92 Petrol and HSD will be frozen and remain unchanged at the current level till midnight 15th January 2017.
As a result of the decision for not passing to the people the actual increase in petroleum products prices and maintaining prices at current level, the Ministry of Finance will bear a revenue loss of Rs. 4 billion approximately.
