The rising costs of petroleum products have driven up the prices of fuel, causing great concern among the public. However, the government seems to be making efforts to control the prices of fuel and offer relief to the consumers.
The Ministry of Finance and Revenue has decided to abolish the General Sales Tax (GST) on petrol to maintain its price. The GST rate on petrol was 1.43 percent in November and was slashed to zero percent on 7 December.
On the contrary, the sales tax rate on high-speed diesel (HSD), kerosene oil, and light diesel have been increased significantly:
- The GST rate on HSD has gone from 6.75 percent to 7.2 percent
- The GST on kerosene has been increased from 6.7 percent to 8.19 percent
- The GST on light diesel oil has been increased from 0.2 percent to 0.46 percent.
The turbulent prices of oil have wreaked havoc on the Pakistani petroleum industry and have worried producers and consumers. Given that the majority of consumers rely mostly on petrol, the government has opted to offer relief to the majority of Petroleum, Oil & Lubricants (POL) users.