Govt pocketing more than twofold of global market petroleum prices
Ogra has recommended a reduction of only 10 percent in the prices
LAHORE (Dunya News) – Petrol has hit the lowest price of USD 25 per barrel in international market while the government is charging more than twofold per litre under taxes.
The government is buying petrol from international market at Rs 37 per litre while rate for the locals is 76.26 per litre. High speed diesel stands at 80.79 per litre in the country.
Pakistan State Oil (PSO) is purchasing Arab Light Oil from Gulf market for USD 25 per barrel.
The government is pocketing Rs 3.76 transportation charges, Rs 2.35 distribution margin, Rs 3.8 dealer margin, Rs 10 petroleum levy and 21 percent general sales tax (GST).
Refined high speed diesel is purchased from Gulf market for Rs 31 per litre. However, the petroleum product is bulked up with taxes for the locals which include Rs 2.35 distribution charges, Rs 2.60 dealer margin, Rs 8 petroleum levy, 47 percent GST and Rs 1.71 fred charges.
The government can relieve the people by cutting GST and petroleum levy.
On the other hand, Oil and Gas Regulatory Authority (Ogra) on Friday forwarded a summary to Finance Ministry recommending a reduction of only 10 percent in the prices of petroleum products.
According to the summary, petrol price is asked to be decreased by Rs 7.56, high speed diesel and high octane by Rs 10.15 whereas kerosene by Rs 8.17 from February 1.
In case the summary is approved by Prime Minister (PM) Nawaz Sharif, light diesel will undergo a price-cut of Rs 7.36.
Separately, a resolution proposing to fix petrol price as Rs 40 per liter was moved in the Punjab Assembly.
The resolution filed by Opposition Leader Mehmoodur-Rasheed stated that petroleum products’ prices in the global market are on the lowest level therefore it is being demanded from the federal government to provide relief to the people.
