Govt silently increases petrol, diesel prices

[Devil Soul]

Govt silently increases petrol, diesel prices
By Zafar Bhutta
Published: August 1, 2019
TWEET EMAIL

Finance Division wants to collect more revenue from consumers. PHOTO: FILE

ISLAMABAD.: The Pakistan Tehreek-e-Insaf (PTI) government on Wednesday silently dropped an oil bomb on the consumers by increasing petroleum products prices up to 10% weeks before the Eidul Azha.

Previously, the finance ministry used to issue statement regarding the oil prices revision. But this time around, the ministry remained silent and did not issue any statement until the wee hours of Thursday.

However, the ministry sent the new rates to the oil marketing companies for the month of August.



Petrol price likely to go up by Rs5.15 per litre

The Oil and Gas Regulatory Authority (Ogra) on Tuesday recommended to the federal government to jack up the prices by 10%, following fluctuation in global oil prices. The ministry expressed reluctance to pass on any partial impact to the consumers and instead decided to pass on full hike in oil prices to the consumers.

The Finance Division wants to collect more revenue from the consumers. Ogra had proposed an increase of Rs 5.15 per litre in motor spirit (MS), Rs 5.65 per litre in high speed diesel (HSD), Rs 5.38 in kerosene oil and Rs 8.90 per litre in light diesel oil (LDO).

Now, the price of petrol had jumped to Rs117.83 per litre from the Rs 112.68, reflecting an increase of 5%. With a similar 5% increase, the HSD price had also gone go up from Rs126.82 per litre to Rs132.47 per litre. HSD is used in the transport and the agriculture sectors and increase in its price will have direct impact on the consumers.

POL prices remain unchanged for July

Similarly, the price of LDO had witnessed a hike of 10% to Rs 97.52 per litre from the Rs 88.62. The kerosene oil price registered an increase of Rs5.38 per litre to Rs103.84 per litre. The LDO is used in industry whereas kerosene is used in remote areas for cooking purpose where LPG is not available.

OGRA has calculated ex-refinery sale prices of petroleum products at standard 17pc GST. The average prices of previous three months (April to June 2019) of imported crude oil by Pakistan State Oil (PSO) is $65 per barrel.

In its outlook for 2019-20, the World Bank forecast the crude oil prices hovering around $67 per barrel. At present, government is charging 17% sales tax on all products.

The federal government is charging Rs18 per litre petroleum levy on HSD, Rs15 per litre on petrol, Rs6 per litre kerosene oil and Rs3 per litre on LDO.

 

[TNT]

This will harm PTI. At a time when international prices are low this is utter stupidity and will backfire.

 

[fisher1]

Tabdeeli

 

[Flight of falcon]

This will harm PTI. At a time when international prices are low this is utter stupidity and will backfire.

First the prices are not getting lower, second they will be adjusted upward as expected and required and third what is silently increase price mean???
Were they expected to do Mujra to announce increase in price? Wait now when Rana randi queen starts her Twitter machine...

 

[VCheng]

At present, government is charging 17% sales tax on all products.

The federal government is charging Rs18 per litre petroleum levy on HSD, Rs15 per litre on petrol, Rs6 per litre kerosene oil and Rs3 per litre on LDO.

Everybody is paying their share of taxes, filers and non-filers alike. Indirect taxes will need to pick up the slack when direct taxes are not levied. There is no other choice for the nation, no matter who is in government.

 

[American Pakistani]

Great step. Hopefully it will help curb oil imports.

 

[Thorough Pro]

Isn't fuel pricing market based? What does government has to do with it? Is OGRA still active?

Govt silently increases petrol, diesel prices
By Zafar Bhutta
Published: August 1, 2019
TWEET EMAIL

Finance Division wants to collect more revenue from consumers. PHOTO: FILE

ISLAMABAD.: The Pakistan Tehreek-e-Insaf (PTI) government on Wednesday silently dropped an oil bomb on the consumers by increasing petroleum products prices up to 10% weeks before the Eidul Azha.

Previously, the finance ministry used to issue statement regarding the oil prices revision. But this time around, the ministry remained silent and did not issue any statement until the wee hours of Thursday.

However, the ministry sent the new rates to the oil marketing companies for the month of August.



Petrol price likely to go up by Rs5.15 per litre

The Oil and Gas Regulatory Authority (Ogra) on Tuesday recommended to the federal government to jack up the prices by 10%, following fluctuation in global oil prices. The ministry expressed reluctance to pass on any partial impact to the consumers and instead decided to pass on full hike in oil prices to the consumers.

The Finance Division wants to collect more revenue from the consumers. Ogra had proposed an increase of Rs 5.15 per litre in motor spirit (MS), Rs 5.65 per litre in high speed diesel (HSD), Rs 5.38 in kerosene oil and Rs 8.90 per litre in light diesel oil (LDO).

Now, the price of petrol had jumped to Rs117.83 per litre from the Rs 112.68, reflecting an increase of 5%. With a similar 5% increase, the HSD price had also gone go up from Rs126.82 per litre to Rs132.47 per litre. HSD is used in the transport and the agriculture sectors and increase in its price will have direct impact on the consumers.

POL prices remain unchanged for July

Similarly, the price of LDO had witnessed a hike of 10% to Rs 97.52 per litre from the Rs 88.62. The kerosene oil price registered an increase of Rs5.38 per litre to Rs103.84 per litre. The LDO is used in industry whereas kerosene is used in remote areas for cooking purpose where LPG is not available.

OGRA has calculated ex-refinery sale prices of petroleum products at standard 17pc GST. The average prices of previous three months (April to June 2019) of imported crude oil by Pakistan State Oil (PSO) is $65 per barrel.

In its outlook for 2019-20, the World Bank forecast the crude oil prices hovering around $67 per barrel. At present, government is charging 17% sales tax on all products.

The federal government is charging Rs18 per litre petroleum levy on HSD, Rs15 per litre on petrol, Rs6 per litre kerosene oil and Rs3 per litre on LDO.

 

[Yaseen1]

When govt is receiving oil from saudis on 3 yrs deferred payments then they should show some restraint in increasing prices

 

[Flight of falcon]

When govt is receiving oil from saudis on 3 yrs deferred payments then they should show some restraint in increasing prices

Pakistan is undergoing massive reforms right now and yes everything is going to go crazy.

Have you ever seen a patient on chemotherapy? Side effects are devastating. We have a saying that chemo is like giving patient bleach to drink. It kills the old system and one hopes the new healthy cells replace missing and dead cells.

Pakistan need all the revenue it can from every source possible until the new systems start replacing the old system and more fair and balanced taxation and revenue system takes hold.
Until then expect a bumpy ride for at least till the next year.

 

[Sine Nomine]

Pakistan is undergoing massive reforms right now and yes everything is going to go crazy.

Have you ever seen a patient on chemotherapy? Side effects are devastating. We have a saying that chemo is like giving patient bleach to drink. It kills the old system and one hopes the new healthy cells replace missing and dead cells.

Pakistan need all the revenue it can from every source possible until the new systems start replacing the old system and more fair and balanced taxation and revenue system takes hold.
Until then expect a bumpy ride for at least till the next year.

That's such a lame example.

 

[Flight of falcon]

That's such a lame example.

I don’t expect you to understand if you have not seen patients on chemo. I treat them almost everyday.

 

[rajiv sharma]

This will harm PTI. At a time when international prices are low this is utter stupidity and will backfire.

but sir , government always need taxes . in the subcontinent , people are not in a habit of paying taxes for nation building , moreover corrupt politicians dont encourage them to do so and if some politician or government tries to do that , they have to search difficult and painful ways to garner money through indirect taxes . important part is , the collected money is used rightfully for the benefit of nation , and imran khan seems to be an honest person ( although it is my perception , i dont know him personally ) .

 

[Paklower]

Same in Finland lol. Diesel wayyy toooo high

 

[!eon]

Very good.

Keep going mr. tabdeeli until they have nothing to eat. Then they will come and crush you in your palace of Bani Gala.

That would be actual tabdeeli.

 

[Kompromat]

How do you increase the price "silently"?