ISLAMABAD: The government on Saturday increased the price of petrol to a record high at Rs137.79 per liter. The government announced to increase prices of all petroleum products with effect from October 15, 2021.
The price of petrol has been increased by Rs10.49 to Rs137.79 from Rs127.30 per liter. The price of High Speed Diesel (HSD) has been increased by Rs12.44 to Rs134.48 from Rs122.04 per liter. The price of kerosene oil has been enhanced by Rs10.95 to Rs110.26 from Rs99.31 per liter. Similarly, the price of light diesel oil has been increased by Rs8.48 to Rs108.35 from Rs99.51 per liter.
A notification issued by the Finance Division said at present, oil prices have risen around $85 a barrel, which is the highest since October 2018.
Importantly, entire energy chain prices have witnessed a strong surge in the past couple of months due to higher demand for energy inputs and supply bottlenecks.
In the current scenario, the government has absorbed the pressure and provided maximum relief to the consumers by keeping petroleum levy and sales tax to a minimum level. Therefore, prices worked out by OGRA have been approved, according to the statement.
In a move aimed at providing relief to consumers, the federal government has announced a reduction in the sales tax rates on the supply of petrol and high-speed diesel (HSD).
He said that the government was absorbing the impact of the decade’s highest price-hike at international level to provide relief to people through various measures including direct food subsidy to the poor.
Addressing a news conference, along with Minister of State for Information and Broadcasting, Farrukh Habib, the federal minister said that Covid-19 pandemic had triggered price hike all across the globe, adding that since Pakistan was importer of some essential commodities, hence it was impacted too.
He said that the government had not passed on all this impact to people.
Talking about the hike in petrol price, the minister said that Pakistan was at 17th number among the countries providing the commodity at the lowest prices, adding that the majority of the other 16 countries having lowest prices than Pakistan were oil-producing countries.
He said that petrol prices in the country were even lower than regional countries, as it was being sold at Rs127 per liter in Pakistan whereas its price in India was Rs235 per liter and Rs195 per liter in Bangladesh.
He said that the government wanted to reduce prices as it had already slashed the petroleum development levy from Rs30 in 2018 to just Rs2.5 per liter.
He said, that the government had budgeted Rs600 billion from petroleum levy, which could be affected as the prime minister wanted to provide relief to people.
Tarin said that it was very unfortunate that no proper attention was given towards agricultural sector for last three decades and resultantly, the country had become net importer of wheat, sugar, pulses and ghee and was directly affected by world inflation.
He said despite all this, the government had taken measures to provide relief to people, particularly poor. The government had to buy sugar at higher rates, but it would be available around Rs90 per kilogram likewise, ghee prices that witnessed around 80-90 percent hike in international market and was available at Rs350 in Pakistan, would come down to below Rs 300 per KG.
He said that the government would also provide direct food subsidies to 12.5 million families which constitute around 44 percent of total population. The subsidy would be provided on flour, sugar, ghee and pulses.
The finance minister said the government was also evolving a mechanism to minimize the role of middlemen, which he said was one of the major causes of inflation adding that the provinces have also been asked to reestablish provincial price administrators to control prices.
He said that the economy of the country was growing as the revenues have witnessed over 38 percent increase and exceeded the target by Rs186 billion.
This means economy was growing, he said and expected that it would grow by 5 percent during the current fiscal year and resultantly it would have trickle down effect.
He said that the major sectors of the economy including agriculture, industry and services sector were witnessing growth.
He said that Kamyab Pakistan Programme would also be launched soon under which farmers would be provided interest-free loans of Rs150,000 per crop, Rs200,000 interest-free loans on mechanization whereas urban households would be provided Rs500,000 per family to start businesses.
In addition, the government was also providing loans up to Rs2 million at 2 percent interest loans for construction of houses whereas health-cards were being provided to facilitate people.
He said that the prime minister was very concerned about the welfare of common people.
About debts, the minister said that the debt-to-GDP ratio came down by 4 percent last year, expecting that it would come down further during the current year.
To a question, the minister said that the government would sincerely negotiate with the International Monetary Fund (IMF). He said that we had promised to collect revenues of RS5.8 trillion and the collection numbers till date show that the target would be exceeded.
He said there were certain challenges faced in the power sector, but added that enhancing tariff rates, as advised by the IMF, was not a solution to the issue, so we would like IMF to provide space in this matter.
The government on Thursday announced a significant hike in the price of petrol, increasing it by Rs 4 per liter, bringing the cost to an all-time high of Rs 127.30 per liter. This marks the highest petrol price in Pakistan’s history. The new prices, along with adjustments to other petroleum products, will take effect from October 1, 2021.
ISLAMABAD: The federal government on Tuesday announced a reduction in prices of all petroleum products for next fortnight.
A statement issued by the Finance Division the new reduced prices will take effect from September 01, 2021.
According to the notification the price of petrol has been reduced by Rs1.50 to Rs118.30 per liter from Rs119.80.
The price of high speed diesel (HSD) has been reduced by Rs1.50 to Rs115.03 per liter from Rs116.53.
Similarly, the rate of kerosene oil has been reduced by Rs1.50 to Rs86.80 per liter from Rs88.30.
The price of light diesel has been reduced by one rupee to Rs84.77 per liter from Rs85.77.
The statement issued by the finance division said that despite international price fluctuation in petroleum products and anticipated increase in future prices, the government has reduced the price in order to provide maximum relief to the consumer.
The government is firmly committed to ensure stability in prices of essential commodities and has sustained the price pressure in line with its commitment to the common man.
It is pertinent to mention that petroleum levy is kept at minimum which is a clear reflection that the government is fully cognizant of the impact of fuel prices on the prices of basic items that affect people directly.
ISLAMABAD: The government on Thursday announced increase in petroleum prices to be implemented midnight with effect from July 16, 2021 for next fortnight.
The government announced an increase of Rs5.4 to Rs118.09 in price of petrol from Rs112.69.
Likewise, the prices of high speed diesel increased by Rs2.54 per liter, from Rs113.99 to Rs116.53; kerosene oil by Rs1.39 per liter, from Rs85.75 to Rs87.14 whereas the price of light diesel oil increased by Rs1.27, from Rs83.40 per liter to Rs84.67 per liter.
The Oil and Gas Regulatory Authority (OGRA) had recommended Rs11.50 increase in per liter petrol, however the Prime Minister, considering to provide maximum relief to the public allowed only Rs5.4 liter increase, said a press statement issued by the Finance Ministry here.
In this way, the government observed Rs6.10 price hike in the commodity, it added. “The government has been providing maximum relief to the consumers by reducing the price of the petroleum products since April 2021,” it added.
The statement said that although the international oil prices have been on rise, the government took the decision not to pass on the entire burden of increase to the consumers.
The rates of sales tax and petroleum levy have been adjusted in a manner that maximum relief is provided to the consumers.
ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday reduced sales tax to 16.40 per cent ad valorem on supply of petrol.
The FBR issued SRO 860(I)/2021 to reduce the sales tax on petrol.
Through the SRO the sales tax rate on petrol has been reduced to 16.40 per cent ad valorem from 17 per cent.
The sales tax rates on kerosene oil and light diesel are 6.7 per cent and 0.20 per cent, respectively.
The FBR kept the sales tax rate at 17 per cent unchanged for high speed diesel oil.
The rates of sales tax on petroleum products have been reduced so the government absorbs the high prices in the international markets and pass on the lesser effect to the consumers.
ISLAMABAD: The government on Wednesday announced an increase in price of petrol by Rs2 to Rs112.69 per liter from Rs110.69 with effect from July 01, 2021.
A statement said that the price of high speed diesel (HSD) has been increased by Rs1.44 to Rs113.99 per liter from Rs112.55.
The price of kerosene oil has been increased by Rs3.86 to Rs85.75 per liter from Rs81.89.
Similarly, the price of light diesel oil has been increased by Rs3.72 to Rs83.40 per liter from Rs79.68.
The statement said that in order to provide maximum relief to the consumers, the government has maintained the practice of keeping the prices of petroleum products at an affordable level.
OGRA has been recommending substantial increase in the prices of Petroleum products since 1st May 2021, corresponding to the increase in prices of the petroleum products in the International markets.
However, keeping in view the welfare of the general public, the government has absorbed the impact of the increase by making adjustments in sales tax and petroleum levy.
Currently, the petroleum levy rates are at the lowest of last six years.
During the financial year 2020-21, the government has provided Rs252.41 billion subsidy to the consumers by keeping low the petroleum levy rates against the budgeted Rs. 30/liter on all products.
It is also worth mentioning that as compared to our regional neighbours, Government of Pakistan is providing Petrol and Diesel at the lowest level rates.
ISLAMABAD: The federal government on Tuesday announced increase in prices of petroleum products for next fortnight effective June 16, 2021.
According to a notification issued by the finance division, the new prices of the petroleum products coming into effect from June 16, 2021, for the next fortnight, are as follow:
The price of petrol has been increased by Rs2.13 to Rs110.69 per liter from Rs108.56 per liter.
The price of high speed diesel oil (HSD) has been increased by Rs1.79 to Rs112.55 per liter from Rs110.76 per liter.
The rate of kerosene oil has been increased by Rs1.89 per liter to Rs81.89 per liter from Rs80 per liter.
Similarly, the rate of light diesel oil has been increased by Rs2.03 to Rs79.68 per liter from Rs77.65 per liter.
