The Federal Board of Revenue (FBR) has issued a notification, SRO 1579(I)/2021, announcing revisions in the sales tax rates on various petroleum products, excluding petrol.
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Govt. keeps petroleum prices unchanged
ISLAMABAD: The government Tuesday decided to keep the prices of petroleum products unchanged for the next fortnight till December 15, 2021.
A notification said that the prices of petroleum products will be the same as notified on November 15, 2021.
Petrol would be sold at Rs145.82 per liter; High-Speed Diesel at Rs142.62 per liter; kerosene oil at Rs116.53 per liter and light diesel oil at Rs114.07 per liter, according to a press statement issued by the finance ministry here.
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Petroleum dealers call off strike on successful talks
ISLAMABAD: The talks between the government and Pakistan Petroleum Dealers Association ended in a success which has led to the strike being called off.
“The talks between the government and petroleum dealers association have led to the strike being called off,” Hammad Azhar, Minister of Energy said in a Tweet on Thursday night.
Earlier, the petroleum dealers association observed a shutdown strike on Thursday for raising profit margin on sale of petroleum products.
Most of the fuel pumps were remained closed during the day. Even those pumps owned by Oil Marketing Companies (OMCs) which announced to open their outlets, were also closed for the shortage of stock.
The energy minister in his Tweet said that the government will notify 0.99 paisa increase in their margins after due approval from the cabinet as per the existing summary. “After six months we will move to % (per cent) system up to 4.4 per cent margin,” he added.
Earlier, PPDA Chairman Abdul Sami Khan said petroleum dealers had been in a difficult position due to the high cost of business and low margins. He said that the government guarantees a margin of only 2 per cent on sales of fuel oil in the face of rising electricity tariffs.
“We demand the government to cancel our petrol pumps licenses,” he said, adding that nearly 50 per cent of the petrol pumps will close down permanently with license cancellation as no one will reapply for acquisition.
“Immediate increase on ex-depot price in dealers’ margin for HSD and MS without burdening common people and without increasing prices of petroleum products, absorbing dealers’ margin increase by reducing Sales Tax and PDL,” he demanded.
A day earlier, Gas & Oil Pakistan Company Limited (GO), with the largest retail outlet network of 1,000 outlets in the private sector and the largest network of company-owned, company-operated (COCO) outlets in Pakistan assured the customers that all its outlets would remain open and continue to function normally.
“GO remains firm in its commitment to fulfilling the fueling needs of the nation come what may,” the company said in a tweet.
Shell Pakistan also announced to open its outlet to serve the nation. “Shell Pakistan announces that they will not participate in the strike on November 25, 2021,” according to the company. All the company-operated retail stations will be opened to serve the customers, it added.
Hascol, another OMC, assured that all its owned and company-operated (COCO) stations, including all service stations on the M2 Lahore-Islamabad Motorway will remain open and ready to serve them as per routine.
Pakistan State Oil (PSO) also showed its commitment that all COCO stations will remain open nationwide and continue to function normally. “PSO is committed to serving the nation during such challenging time,” it said.
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Petrol price increases to new high of Rs145.82 per liter
ISLAMABAD: The government on Thursday night announced an increase of Rs8.03 to Rs145.82 per liter in the price of petrol effective from November 05, 2021.
The government announced increase in prices of all petroleum products.
The price has been increased from previous high of Rs137.79.
Similarly, the price of high speed diesel has been increased by Rs8.14 to Rs142.62 from Rs134.48.
The rate of kerosene oil has been increased by 6.27 per liter to Rs116.53 from Rs110.26. Likewise, the price of light diesel oil has been increased by Rs5.72 per liter to Rs114.07 from Rs108.35.
A notification issued by the Finance Division stated that on November 01, 2021, the prime minister had not agreed with the proposals worked out by the Oil and Gas Regulatory Authority (OGRA) and the finance division directed to maintain the prices as notified on October 16, 2021.
It is pertinent to mention that maintaining the October 16, 2021 petroleum prices had some underlying concerns for cash flow issues due to short recovery of the cost, according to the statement.
It is important to note that in the previous petroleum prices, already a significant relief was provided to the consumers. The government is cognizant of its responsibility to provide maximum relief to the consumers.
“This has dented the petroleum levy budget of Rs152.5 billion during July – September, 2021 as compared to Rs20 billion realized only,” it said.
Foregoing in view, prices of petroleum products have been increased partially as compared to the prices being worked out by the OGRA. If the government had accepted OGRA’s recommendations, the new prices would have been much higher.
Infact, the government has absorbed the bulk of the pressure after making adjustment after making adjustment in the sales tax and petroleum levy. The collection of petroleum levy is far short of its fixed target for the first quarter of the fiscal year 2021/2022, it added.
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Govt. decides to cut duty, taxes on edible oil: Umar
ISLAMABAD: In a bid to counter rising inflation and alleviate the economic burden on citizens, the government has decided to reduce duty and taxes on the supply of edible oil.
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Petrol price goes up to record high at Rs137.79/liter
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.
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Tarin defends price hike in petroleum products
ISLAMABAD: Finance Minister Shaukat Tarin on Friday defended the hike in prices of petroleum products effective from October 01, 2021.
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.
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Petrol price increases to record high at Rs127.30/liter
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.
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Sales tax on high speed diesel reduced by 31.5%
ISLAMABAD: The federal government has announced a reduction of sales tax rate by 31.5 per cent on supply of High Speed Diesel (HSD). The rate sales tax on HSD has been reduced in order to lower the impact of higher prices pass on to the consumer.
The Federal Board of Revenue (FBR) issued SRO 1225(I)/2021 dated September 18, 2021 to notify the reduction in sales tax on HSD.
According to the SRO the sales tax rate on HSD has been reduced to 11.64 per cent from previous level of 17.00 per cent.
Previously, the FBR issued SRO 1072(I)/2021 dated August 26, 2021 to revise the sales tax on petroleum products.
In the latest SRO only sales tax rate on HSD has been reduced. The sales tax rates on other petroleum products have been kept unchanged. The sales tax rates on petroleum products are: Petrol 10.54 per cent; HSD 11.64 per cent; Kerosene oil 6.70 per cent; Light Diesel Oil 0.20 per cent.
It is worth mentioning that the federal government on September 15, 2021 announced an increase in the prices of petroleum products.
With the announcement the petrol prices have gone up to the all-time high level. However, it is even more important that the sales tax rates are on the lowest side when compared with the rates applicable during year 2015.
The government has increased latest prices owing to fluctuations in petroleum prices in the international market and exchange rate variation.
Following are the rates of petroleum products, which will take effect from September 16, 2021:
The rate of petrol has been increased by Rs5 to Rs123.30 per liter from Rs118.30.
The rate of high-speed diesel has been increased by Rs5.01 to Rs120.04 per liter from Rs115.03.
The rate of kerosene oil has been increased by Rs5.46 to Rs92.26 per liter from Rs86.80.
The rate of light diesel oil has been increased by Rs5.92 to Rs90.69 from Rs84.77.
In the latest SRO 1225(I)/2021 dated September 18, 2021, the sales tax rates on petroleum products are: Petrol 10.54 per cent; HSD 11.64 per cent; Kerosene oil 6.70 per cent; Light Diesel Oil 0.20 per cent.
The present sales tax rates on petroleum products are much lower when compared with sales tax rates prevailed about six years ago. The FBR issued SRO 963(I)/2015 dated September 30, 2015. The sales tax rates under this SRO are: Petrol 26 per cent; Kerosene 30 per cent; High Speed Diesel 50 per cent; Light Diesel Oil 29.50 per cent.
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Petrol price increased to all-time high at Rs123.30/liter
ISLAMABAD: The price of motor spirit (petrol) has been increased to all-time high at Rs123.30 per liter and will take effect from September 16, 2021.
The Finance Division on Wednesday issued the rates of petroleum products for the next fortnight. The government has increased the prices of all petroleum products for the next 15 days.
The government has increased the prices owing to fluctuations in petroleum prices in the international market and exchange rate variation.
Following are the rates of petroleum products, which will take effect from September 16, 2021:
The rate of petrol has been increased by Rs5 to Rs123.30 per liter from Rs118.30.
The rate of high-speed diesel has been increased by Rs5.01 to Rs120.04 per liter from Rs115.03.
The rate of kerosene oil has been increased by Rs5.46 to Rs92.26 per liter from Rs86.80.
The rate of light diesel oil has been increased by Rs5.92 to Rs90.69 from Rs84.77.