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

    • Writers on ProPakistani are probably 8th grade pass who prefer not to do any research.

      Even high octane costs ~ Rs. 60/litre in some oil producing GCC countries. So transportation, overheads should be paid by govt ?

      Does writer even understands that across Pakistan price is same and Govt. has to ensure this imposing levy and taxes?

      If you are doing any research please do not transfer that “jahiliat” to your readers.

      • Lol. I don’t usually reply to people like you, but couldn’t control myself here. You called me a child, what are you yourself? Government was ABLE to manage pretty well all these costs of transportation, etc till the last month, when the Intl. prices were a bit high. As the Intl. prices were reduced, the benefit should’ve been given to the people by reducing the price of petrol rather than taken away in taxes (amounting to Rs. 8 billion). Simple as that. Even if some countries sell petrol for Rs. 2/ltr, that’s irrelevant here.

        It’s not the writer that has to understand, it’s you Mister. The government had already imposed levy last month, and the month before that. Are you telling me the cost for transportation is constantly increasing every month while the petrol prices are falling down and hence government has to increase taxes so they can manage the prices in the entire country which were being managed last month and the month before that when petrol in Intl. market was expensive? Seriously, please start talking sense and STOP defending the government. Don’t you get tired of defending PML-N at every step?

        P.S. Don’t bring IK into this, I hate him.

        • I feel so honored seeing you replying my comment, You do not reply to people like me but still you write two paragraphs.

          First go and see how OGRA recommends price adjustments even before you comment here. By mentioning transportation and levy what I meant was prices are too close to the import cost and Pakistani market is already enjoying a low price for petrol and diesel. “Benefit should’ve been given” is fine if prices were increased when prices were supposed to be high comparing with international market. For you petrol prices in other countries might be irrelevant then with what are your comparing these prices ? For rest of the world it is relevant; in neighboring India prices aren’t the same across the country and in Dehli today it is Rs. 67/ liter (Indian Rupee).

          P.S. Being hostile shows your intellect and ignorance, nothing else.

      • Oh yea corruption is proved in court but question is why court still sent cases for trial ? When court was so keen to find excuses in black law dictionary and not 2001 tax law of Pakistan defining “asset” why that court let cases go for trial ?

        This is mockery to justice when Hudabia paper mill’s defaulters are free and those who paid loans are going to face trials… Sadly keen judges who directly helped petitioners could not brought a direct link to any corruption in Pakistan, couldn’t bring any proof of money laundering…but yes you are right..corruption was done… *clapping*

  • what should they do with extra revenue?? distributing among themself by the name of Benazir Income Support???????? we are just creating beggars,not employment opportunities for people…

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