'Pakistan's petroleum prices lowest in the region'

Federal Minister for Power, Petroleum and Natural Resources Omar Ayub informed the Senate on Friday that the federal government is collecting tax at Rs47.86 per litre on petrol and Rs51.41 per litre on diesel.

The response came following Jamaat-e-Islami (JI) Senator Mushtaq Ahmed's question over why the government was collecting 100% more tax than the purchase price of petrol.

The minister said that Prime Minister Imran Khan was actually providing relief to the people as the price of oil in the region is currently the lowest in Pakistan. Only 17% tax is being levied on petroleum products, he stated.

“In terms of supply, tax is being collected at Rs9.70 per litre, Rs47.86 per litre on petrol and Rs51.41 per litre on diesel,” the federal minister stated. “If the government does not collect taxes, who will pay for the Senate's lights and salaries of its members?" the minister quipped.

Meanwhile, responding to another question during the National Assembly session, Minister Ayub said that Kekra-1 was started as a joint venture by ExxonMobil, OGDCL and PPL.

More than Rs122 million was spent on digging the well, he said, adding that the government did not spend any money on this project.

“The well was dug at 5,693 meters but the search was not successful,” he said. “The excavation of this well revealed that there is no oil and gas pressure, rather there is a reservoir of water.”

On June 26, the government had increased the price of petrol by Rs25.58 per litre to Rs100.10 per litre, while the price of high-speed diesel was increased by Rs21.31 per litre to Rs101.46 per litre.