Cabinet decides against Rs4 cut in oil prices
Prices of petroleum products unchanged for fifth consecutive month
Prices of petroleum products unchanged for fifth consecutive month. PHOTO: FILE
ISLAMABAD:
The federal government on Thursday decided not to pass on relief of Rs4 per litre cut in oil prices to the consumers in a bid to enhance revenue through taxes on petroleum products for the month of September.
The decision was taken by the federal cabinet instead of Prime Minister Nawaz Sharif in line with the Supreme Court’s order. The apex court had ruled that the premier had no discretionary powers to decide and rather the federal government should take such decisions.
Fuel prices to stay stable in August
Officials familiar with the development said that oil prices were notified through Statutory Regulatory Order (SRO) to make adjustment of cut in oil prices. According to working, the price of High Speed Diesel (HSD) mainly used in agriculture and transport sectors was proposed to be cut by Rs4 per litre and petrol by Rs3 per litre. The government earns Rs30 billion per month through General Sales Tax (GST) and Rs10 billion through petroleum levy (PL) on petroleum products.
However, the federal cabinet, chaired by the prime minister, decided to keep prices of five petroleum products unchanged for the month of September.
According to officials, prices of petroleum products were expected to witness hike in the coming months and therefore, government may lose revenue if it keeps oil prices unchanged.
This is for the fifth consecutive month the government has left the prices of petroleum products unchanged, Federal Minister for Finance Ishaq Dar said here while briefing a press conference regarding the Federal Cabinet’s decision.
“As a result of keeping the petroleum prices unchanged, in the previous two months alone, the government is taking extra burden of Rs10 billion,” Ishaq Dar said.
Petroleum products: OGRA recommends upward revision in oil prices
Rejecting the claim of a certain quarter that the government is charging extra GST on petroleum products, the minister said that except High Speed Diesel GST on other petroleum products is less than June 2013.
Published in The Express Tribune, September 1st, 2016.
The federal government on Thursday decided not to pass on relief of Rs4 per litre cut in oil prices to the consumers in a bid to enhance revenue through taxes on petroleum products for the month of September.
The decision was taken by the federal cabinet instead of Prime Minister Nawaz Sharif in line with the Supreme Court’s order. The apex court had ruled that the premier had no discretionary powers to decide and rather the federal government should take such decisions.
Fuel prices to stay stable in August
Officials familiar with the development said that oil prices were notified through Statutory Regulatory Order (SRO) to make adjustment of cut in oil prices. According to working, the price of High Speed Diesel (HSD) mainly used in agriculture and transport sectors was proposed to be cut by Rs4 per litre and petrol by Rs3 per litre. The government earns Rs30 billion per month through General Sales Tax (GST) and Rs10 billion through petroleum levy (PL) on petroleum products.
However, the federal cabinet, chaired by the prime minister, decided to keep prices of five petroleum products unchanged for the month of September.
According to officials, prices of petroleum products were expected to witness hike in the coming months and therefore, government may lose revenue if it keeps oil prices unchanged.
This is for the fifth consecutive month the government has left the prices of petroleum products unchanged, Federal Minister for Finance Ishaq Dar said here while briefing a press conference regarding the Federal Cabinet’s decision.
“As a result of keeping the petroleum prices unchanged, in the previous two months alone, the government is taking extra burden of Rs10 billion,” Ishaq Dar said.
Petroleum products: OGRA recommends upward revision in oil prices
Rejecting the claim of a certain quarter that the government is charging extra GST on petroleum products, the minister said that except High Speed Diesel GST on other petroleum products is less than June 2013.
Published in The Express Tribune, September 1st, 2016.