PM Imran rejects proposal to jack up petroleum prices

Prime Minister Imran Khan has rejected the Ministry of Finance's proposal seeking a hike in the prices of petroleum products in a bid to boost revenue.

According to a statement issued by the Prime Minister's Office on Monday, the finance ministry had sent a summary to increase the petroleum levy and sales tax by Rs5 on petrol and diesel.

The statement added that the premier had directed the finance ministry to present a summary of the tax hike on petroleum products in the federal cabinet meeting after consulting with the Federal Board of Revenue (FBR).

The current prices of petroleum products will remain unchanged for the next 15 days, it added.

Also read: Tarin rules out 'further' relief on fuel prices

The development comes a day after Finance Adviser Shaukat Tarin said that the government would not able to provide relief to the public in case of an increase in fuel prices in the international market.

Talking to the media in Karachi, the financial adviser said the local petroleum prices were directly proportional to the prices in the global market.

"There is no relief in it. Whatever [price hike] comes will be passed through [to the people]," he added. According to Tarin, the government does not have space to provide "further relief" as he has already brought down sales tax on petrol from 17 per cent to 1.6 per cent.

It may be noted here that petroleum prices in Pakistan have touched an all-time high with petrol being sold at Rs146 per litre.

This, coupled with the devaluation of the rupee against the US dollar, has resulted in a high inflation rate across Pakistan.