Government likely to keep oil prices unchanged

ISLAMABAD: The caretaker government is likely to leave petroleum product prices unchanged and pass the responsibility of rate revision on to incoming government of Pakistan Tehreek-e-Insaf (PTI) that won the recently held general elections.

Sources in the Oil and Gas Regulatory Authority (Ogra) told The Express Tribune that two proposals were being considered for revision in petroleum product prices for August.

First, the decision on price revision should be left for the upcoming government which is likely to take reins of the country in the second week of August and second, prices of petrol and high-speed diesel should be increased by Rs2.10 per litre in line with calculations of Ogra. Final decision will be taken on Tuesday.

When approached, Energy Minister Ali Zafar acknowledged that there was a proposal to keep petroleum prices unchanged as about a week was left before the installation of the new government.

Earlier, the caretaker government had on July 1 hiked the price of petrol by Rs7.54 to Rs99.50 per litre, diesel by Rs14 to Rs119.3 per litre and kerosene oil by Rs3.36 to Rs87.7 per litre. It also raised rates of other petroleum products.

Caretaker govt slammed for increasing petrol prices

However, a week later, the prices were brought down after the Supreme Court took notice of heavy taxes on the sale of petroleum products.

On July 7, the federal government reduced prices of petroleum products by up to Rs6.37 per litre in order to provide relief to the general public.

According to a notification issued by the Ministry of Finance, the petrol price was reduced by Rs4.26 to Rs95.24 per litre, high-speed diesel by Rs6.37 to Rs112.94, kerosene oil by Rs3.74 to Rs83.96 and light diesel oil by Rs5.54 to Rs75.37.

Taking suo motu notice of exorbitant and unreasonable taxes, cess, duty and fee on petroleum products, the Supreme Court had asked the stakeholders to work out a comprehensive plan and come up with suggestions on how much taxes could be curtailed to take prices to reasonable levels.

As a result of the reduction in petroleum prices, the government sustained an estimated revenue loss of Rs10 billion.

Reduction in prices of petroleum products will be effective from midnight Saturday

  • On last day, PML-N govt shies from hiking prices

    Oil prices to stay same; to be reviewed next week by the caretaker setup

  • Caretaker govt’s decision to lower petrol prices hailed

    SC took notice of sudden rise in oil prices and taxes last week

    Original news :