Price hike: Oil prices raised in June for the third time

95% of stations will sell petroleum products at higher prices due to GST on unregistered pumps.

ISLAMABAD:

Due to a tricky move of the government, the consumers are going to face a third time increase in oil prices during the ongoing month of June.

A senior government official said the government had imposed 19% General Sales Tax (GST) on non-registered petrol pumps causing a third time increase in oil prices up to Rs2.70 per litre.

The official said Oil and Gas Regulatory Authority (Ogra) had not notified increase in oil prices. However, Oil Marketing Companies (OMCs) and petroleum dealers have increased prices following directive of Federal Board of Revenue (FBR).

He said 95% petrol pumps in the country were unregistered and, therefore, the GST rate had increased to 19% for these dealers, causing hike in oil prices for a majority of the consumers across the country.

The government had raised oil prices on June 13 following hike in rate of GST from 16 to 17% before the budget was approved. The Supreme Court had also taken suo motu notice of this increase up to Rs1.07 per litre.

For the consumers, getting oil supplies from unregistered petrol pumps, the price of petrol is increased by Rs1.72 per litre, High Speed Diesel (HSD) by Rs1.80 per litre, High Octane Blending Component (HOBC) by Rs2.70 per litre, kerosene oil by Rs1.70 per litre and Light Diesel Oil (LDO) by Rs1.54 per litre.

After the third time increase in oil prices, the new price of petrol stands at Rs102.35, HSD - Rs107.30, HOBC - Rs139.10, kerosene oil - Rs96.19 and LDO - Rs91.44 per litre.

According to Petroleum Dealers Association, petrol pumps have started charging consumers according to 19% GST. They have sought two months time from the government to register their pumps.

Published in The Express Tribune, June 18^th, 2013.