Petroleum prices kept unchanged for next fortnight

Petroleum prices kept unchanged for next fortnight

ISLAMABAD: The government has kept the prices of petroleum products unchanged for next fortnight on Monday after Prime Minister Imran Khan rejected the proposals to hike the POL prices.

Prime Minister Imran Khan Monday rejected proposals to increase the petrol price by Rs 10 per liter and diesel by Rs 14, in the national interest.

READ MORE: Pakistan’s petrol price rises to record high at Rs147.83

The prime minister said that government would bear the burden of the price hike this time to protect the people from the additional economic burden.

READ MORE: Prices of all POL products increased to wish New Year

As the government was striving to avert the burden of inflation from the people, therefore the prime minister deferred the Energy Ministry’s summary despite the fact that the oil prices were increasing worldwide owing to the swelling global inflation.

Following the decision, the prices of petroleum products will be maintained at: petrol Rs147.83 per liter; high speed diesel (HSD) Rs144.62 per liter; kerosene Rs116.48 per liter; and light diesel oil at Rs114.54 per liter.

READ MORE: Petrol price reduces to Rs140.82 per liter

A statement issued by the Finance Division stated that the petroleum products are showing substantial increase in the international market and presently trading at highest level since 2014. The oil prices have witnessed an increase of 14.5% just in last month in the global market.

The existing Sales Tax rate and Petroleum Levy on various petroleum products are much below the budgeted targets. The Government is bearing the revenue loss of around Rs.30 billion (fortnightly) on account of budgeted to existing PL and ST rates and Rs. 260 billion annually due to reduced ST rate.

READ MORE: Govt. keeps petroleum prices unchanged

Despite revenue losses due to rising petroleum prices globally, the Prime Minister of Pakistan has deferred the proposal by OGRA to increase up to Rs. 16.79/Litre in the petroleum product prices and desired that petroleum product prices shall remain the same from 1st February, 2020 as notified earlier on 15th January, 2022 for providing maximum relief to the general public. The Prime Minister has further desired to keep the prices at the same level through adjustments in Sales Tax, if required.