The government of Pakistan dropped another massive bomb on the masses as it announced a belated increase in the prices of petroleum products by up to Rs.9.42 per litre at the start of May 2019.
The matter of petroleum price hike was forwarded to the Economic Coordination Committee (ECC) which was chaired by Dr. Hafeez Sheikh. The committee took the final decision on 3rd May as it increased the prices of petrol by Rs.9.42, kerosene oil by Rs.7.46, light-speed diesel by Rs.6.40 and high-speed diesel by Rs.4.89 respectively. Note here that Oil and Gas Regulatory Authority (OGRA) had previously recommended an increase in the petrol prices by up to Rs.14 per litre. Perhaps it’s the most bullish increase ever since the PTI government has taken charge. According to the government’s claim, oil prices have increased in the international market that forced them to announce a hike. But, is it the only reason to count on? Certainly not!
The government has imposed additional taxes on the petroleum products which ensured a high climb in prices. The government will collect nearly Rs.55 billion on account of sale of petroleum products (POL) in May 2019 only. Under the head of general sales tax, regulatory duty, and petroleum levy, nearly Rs.40 per litre is being collected on the sale of petroleum products. As a matter of fact, the government could still reduce the prices of diesel by Rs.4 per litre in accordance with its global market prices. The Finance Division has imposed a high amount of petroleum levy on the sale of POL products. The sky-rocketing rates of petroleum levy tend to put the general public under immense pressure as the inflation hits almost all markets.
The petroleum levy on petrol for direct sale and sale through retail outlets is Rs.17.62 and Rs.14.15 per litre respectively. On the other hand, it stands at Rs.5.98 per litre on the direct and retail sale of high-speed diesel whereas Rs.2.58 per litre is being charged on the sale of light diesel oil. Hence, the prices of petroleum products have increased significantly in May 2019. The new rates are as follows:
- Petrol: Rs.108.31 per litre
- High-speed diesel: Rs.122.32 per litre
- Light-speed diesel: Rs.86.94 per litre
- Kerosene Oil: Rs.96.77 per litre
The additional taxes levied by the government are doing no good to the common public as they are already under the burden of the global rise in oil prices and depreciation of Pakistani Rupee against the US dollar. Under the current situation, the impact is not partially transferred to the public, and it’s also affecting the automobile industry of Pakistan with rising vehicle prices and dropping sales due to the decreasing buying power. Nonetheless, it’s not a positive sign for the local industry which is looking to grow with the addition of several new players.
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Provide details of extra taxes imposed.
Its okay. Soon the price of liter will be 1000 rupee so the whole nation will move on to motorbikes. Hence eradicating the auto industry of Pakistan as a whole.