Prime Minister Imran Khan on Monday rejected a new proposal to increase the prices of petroleum products, according to a statement issued by the Prime Minister’s Office (PMO).
The statement said the Finance Division sent a summary – which was prepared by the Oil and Gas Regulatory Authority (Ogra) – to the prime minister, suggesting a rate hike on petroleum products as of November 16.
According to the text of the summary shared by the PMO, the prices of petroleum products fluctuate in the international market and the change in the exchange rate also affects the prices.
“Current sales tax rates ranging [from] 0.20% to 6.75 pc are lower than the reference rate of 17 pc and the PL rates (oil levy) [ranging between] Rs0 per liter to Rs9.62 per liter are also reduced from the budgeted PL rate of Rs30 per liter, âthe summary states.
In the summary, the Ogra suggested that the current price of gasoline be increased by Rs 5 to 150.80 per liter and that of high speed diesel (HSD) also by Rs 5 to 147.62 per liter, to effective November 16. No increase has been suggested in the price. of kerosene and light diesel (LDO).
“The Prime Minister has seen and, while not approving the proposal (…) of the summary, likes to hope that [the] the prices of petroleum products from November 16, 2021 will remain the same as the current fortnight, “said the PMO press release.
He added that the Finance Division, in consultation with the Federal Revenue Council, should take the issue of adjusting sales tax rates for petroleum products to the federal cabinet, if necessary.
In the past two months, the government has twice raised the prices of petroleum products and has since come under heavy criticism. Major opposition parties, including the PML-N and PPP, as well as the opposition Pakistan Democratic Movement alliance, have staged rallies across the country and protests against what they call “free inflation. previous”.
The federal government had drawn the wrath of its political rivals after raising the price of gasoline by Rs 10.49 per liter and that of the HSD by Rs 12.44 per liter on October 16. Meanwhile, the prices of kerosene and LDO have been increased by Rs 10.95 and Rs 8.84 per liter respectively.
Later, after rejecting another suggestion to increase petroleum product prices on October 30 in the “public interest”, the government again increased rates to Rs 8.14 per liter with immediate effect on October 5. November to ensure the relaunch of the International Monetary Fund Program.
The government had increased the price of gasoline and HSD by Rs 8.03 and Rs 8.14 per liter, respectively. Likewise, the prices of kerosene and LDO were increased by Rs 6.27 and Rs 5.72 per liter, respectively.
The ex-depot price for gasoline was set at Rs 145.82 per liter and that of HSD at Rs 142.62 per liter. Likewise, the ex-depot price of kerosene was set at Rs 116.53 per liter and the ex-depot rate of LDO was increased to Rs 114.07 per liter.