Government keeps petroleum prices unchanged for July
Finance ministry will bear an additional burden of Rs3 billion, says Ishaq Dar
Finance ministry will have to bear the additional burden of Rs3 billion, says Ishaq Dar. PHOTO: RIAZ AHMED/EXPRESS
Government has decided to keep the prices of petroleum products unchanged for July, despite a surge in rates of crude oil in international markets.
“We have rejected the recommendation of the Oil and Gas Regulatory Authority (Ogra) for a price increase and have decided to keep the prices unchanged for the upcoming month,” Finance Minister Ishaq Dar said while speaking to media in Islamabad on Thursday.
“[As a result] The finance ministry will have to bear the additional burden of Rs3 billion."
OGRA recommends upward revision in oil prices
Ogra on Wednesday had recommended in a summary an increase of up to 19.9% in POL prices July onwards.
The government has the capability to absorb the impact of the proposed increase in oil prices by adjusting tax rates on petroleum products.
Despite a decline of over 50% in global prices, consumers have largely been denied a full relief due to hefty taxes.
The increase in tax rates comes as Pakistan continues to suffer from a revenue shortfall and a tax-to-GDP ratio that is one of the lowest in the region.
At present, two types of taxes are being charged from oil consumers including petroleum levy and general sales tax.
“We have rejected the recommendation of the Oil and Gas Regulatory Authority (Ogra) for a price increase and have decided to keep the prices unchanged for the upcoming month,” Finance Minister Ishaq Dar said while speaking to media in Islamabad on Thursday.
“[As a result] The finance ministry will have to bear the additional burden of Rs3 billion."
OGRA recommends upward revision in oil prices
Ogra on Wednesday had recommended in a summary an increase of up to 19.9% in POL prices July onwards.
The government has the capability to absorb the impact of the proposed increase in oil prices by adjusting tax rates on petroleum products.
Despite a decline of over 50% in global prices, consumers have largely been denied a full relief due to hefty taxes.
The increase in tax rates comes as Pakistan continues to suffer from a revenue shortfall and a tax-to-GDP ratio that is one of the lowest in the region.
At present, two types of taxes are being charged from oil consumers including petroleum levy and general sales tax.