Skip to main content

Prices of petroleum products cut after considerable confusion

ISLAMABAD: Amid confusing statements by some cabinet members, the government on Friday announced a reduction in prices of petroleum products by up to 5.8 per cent for the month of September owing to decline in prices in the international market.

It all started when Special Assistant to the Prime Minister on Information Dr Firdous Ashiq Awan announced the price cuts through her Twitter account, saying the government would pass on the benefit of lower prices in the international market to the public.

Later, Special Assistant to the Prime Minister on Petroleum Nadeem Babar told Dawn that “as per policy implemented last month, the government has decided to pass full impact of price reduction”.

However, this was soon contradicted by the finance ministry. “The new POL prices being reported in a section of the media are not correct. Official press release in this regard shall be issued tomorrow evening,” said a ministry statement received through WhatsApp.

5.8pc reduction announced for September

As the confusion continued and various cabinet members engaged in talks, Energy Minister Omar Ayub Khan took to Twitter to announce that the government was extending full benefit of the price reductions in the international market to the people. He also issued a written statement about price adjustments.

In time the cabinet members “agreed” to pass on partial benefit of reduction in the price of high speed diesel (HSD) to consumers. It was agreed that the price of HSD would be cut by 4pc and the government would retain 1.8pc as “windfall revenue”.

Over the past few months, the petroleum and finance divisions have refrained from announcing petroleum prices and have been quietly urging the oil companies to increase rates.

Based on import invoices of the Pakistan State Oil (PSO) and existing taxes at elevated levels, the Oil and Gas Regulatory Authority (Ogra) had worked out a reduction of Rs4.59 per litre in the price of petrol (motor spirit) and Rs7.67 per litre in that of HSD.

The Ogra had calculated Rs4.27 per litre cut in the price of kerosene oil and Rs5.63 per litre decrease in the rate of light diesel oil (LDO).

An official said the price of crude oil had declined by more than 12pc in Arabian Gulf, from $72 on April 28 to $59 per barrel on Aug 30, but the government has been increasing tax rates over the past few months to meet IMF targets.

Based on import parity price of the PSO for purchases in August, the ex-depot rate of HSD has been fixed at Rs127.14 per litre for Sept against Rs132.47 per litre at present.

Likewise, the ex-depot price of petrol has been brought down by about 3.9pc to Rs113.24 per litre instead of Rs117.83 per litre at present.

The ex-depot price of LDO has been reduced by Rs5.63 per litre (5.8pc) to Rs91.89 per litre instead of Rs97.52 at present. The price of kerosene oil has been fixed at Rs99.57 per litre instead of Rs103.84, showing a reduction of about 4.1pc.

The government is currently charging 17pc general sales tax on all petroleum products. Besides the GST, the government is charging petroleum levy at a rate of Rs18 per litre on HSD, Rs15per litre on petrol, Rs6 on kerosene oil and Rs3 per litre on LDO.

Petrol and HSD are the two major products that generate most of the revenue for the government because of their growing consumption in the country.

The petroleum prices in the country have generally been on the rise since early 2017.

Published in Dawn, August 31st, 2019



from The Dawn News - Home https://ift.tt/2Zrummx
via IFTTT
Labels:

Comments

Post a Comment

Popular posts from this blog

IT ministry forms panel to review social media rules

ISLAMABAD: While uproar against the new rules to regulate social media continues from various segments of society, including parliamentarians, the Pakistan Federal Union of Journalists (PFUJ) and civil society, the information technology ministry on Friday formed a committee to review the rules. The federal cabinet approved the rules on Feb 11, but later after opposition from various quarters, including companies that manage different social media platforms, the prime minister announced that a fresh consultation process would be launched over the Citizens Protection (Against Online Harm) Rules 2020. The committee formed by the IT ministry is headed by Pakistan Telecommunication Authority Chairman Amir Azeem Bajwa while its members are Eazaz Aslam Dar, additional secretary of IT; Tania Aidrus, member of the Strategic Reforms Imple­mentation Unit, Prime Minister Office; and Dr Arslan Khalid, focal person on digital media at the PM Office. Federal Minister for Human Rights Dr Shireen Ma
Post a Comment
Read more

Young girl’s tragic story makes her symbol of Yemen war

Buthaina Mansur al-Rimi’s life has changed drastically since last year — orphaned in Sanaa, the little girl controversially ended up in Saudi Arabia for medical care and has just returned to Yemen’s capital. Her entire immediate family was wiped out in an air strike by a Saudi-led coalition that backs Yemen’s government, using an explosive device Amnesty International says was made in the US. Images of Buthaina’s rescue and a picture of her swollen and bruised at a hospital trying to force open one of her eyes with her fingers were beamed worldwide. That international fame saw her become something of a propaganda pawn in the war between Yemen’s Iran-backed Huthi rebels and Saudi media. “I was in my mother’s room with my father, sisters, brother and uncle, the first missile hit, and my father went to get us sugar to get over the shock, but then the second missile hit, and then the third,” she says. “And then the house fell,” adds the little girl, who says she is eight. It was the
Post a Comment
Read more