International Oil Prices Fall But Stay the Same in Pakistan

The Ministry of Finance announced yesterday that the rates of petroleum for the month of August will remain the same as of now. The bureaucracy has failed to make POL price adjustment for the month of August due to the recent political conditions and also due to the absence of a Chief Executive.

In a press statement released by the Finance Ministry, it said:

“Considering the special circumstances, the rates of petroleum products would be maintained at the existing level till a decision by the competent authority.”

However, the government has decided to increase the general sales tax (GST) on both petrol and high-speed diesel. This move is expected to generate more revenues for the government.

High-speed diesel will see an increase in GST of 19.4% this time, from 33.5% to 40%. Meanwhile GST rates for petrol will increase by 14.6%, up from 20.5% previously to 23.5%.

Previously, the Oil and Gas Regulatory Authority (OGRA) recommended a cut of Rs. 5.07/l for high-speed diesel and Rs. 3.67/l for petrol. However, the Finance Ministry was not in favor of making that cut and instead wanted to maintain the prices at their existing level.

Moreover, the increased GST will not only help keep the prices at the current level but also bring in an additional estimated revenue of Rs. 8 billion in taxes.

via – Dawn