SC seeks explanation on increase in the sales tax on POL products

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Supreme Court of Pakistan has ordered the government and all the concerned departments to provide a detailed report on taxes imposed on petroleum products, and to compare the taxes with domestic and global standards. The government till now has increased general sales tax on petroleum products as much as 25 percent, while on the other hand, the prices of crude oil have decreased.

As per a local media outlet, at the hearing, the Chief Justice of Pakistan addressed Additional Attorney General and said that why government increases sales tax on petrol even after the prices of crude oil decreases internationally.  

Read Also: Government bumps prices of petrol and diesel

Additional Attorney General (AAG) replied that Pakistan has lowest petrol rates in the region, even if compared to India. However, CJP rejected these answers and said not to compare the prices with India.

AAG informed the court that customs tax, sales tax, and petroleum levy are the taxes which are being collected on petrol and its related products. 11.4pc GST is being charged on petroleum products. Moreover, AAG also revealed in the court that the government doesn’t set the prices of petroleum products on crude oil.

The government for the last 8-9 months has consistently bumped the prices of POL products in the country while facing harsh criticism from public, transporters and other stakeholders.

The new prices of petroleum products are as follows:

  • Petrol– Rs 87.70 per liter (Rs 1.70 increase)
  • High-speed Diesel– Rs 98.76 per liter (Rs 2.31 increase)
  • Light-speed Diesel– Rs 68.85 per liter (Rs 3.55 increase)
  • Kerosene– Rs 79.87 per liter (Rs 3.41 increase)

Stay tuned for latest updates.


My name is M. Ali Laghari and I love to read and write about Cars.

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