Sindh Assembly Wants Petrol Prices to Be At 40 Rs. Per Liter, Passes Resolution

The dilemma that surrounds Pakistanis is that petrol prices in Pakistan aren’t coming down to the level where they should be. Global oil prices are down to just $25 per barrel. Sindh Assembly argues that the government is not transferring the true benefits of the reduction in global oil prices and are still charging the undue price of petrol at 71.25 Rupees per liter, Hi-octane at 75.66 Rupees per liter and high speed diesel at 75.79 Rupees per liter.

OGRA announced a reduction in fuel prices by 7.56 rupees per liter in petrol and 10.15 per liter in diesel. Though PM Nawaz Sharif had assured that government is doing everything to provide as much relief to the people as possible, even after a drop of 2 percent in inflation.

The current breakdown of petrol prices is as follows:

Arab Light Oil is purchased by PSO from Gulf at US$ 25 and then the following charges are applied in Pakistan:

• 3.76 Rupees Transportation charges
• 2.35 Rupees Distributor margin
• 3.8 Rupees Dealer margin
• 10 Rupees Petroleum levy
• 21 percent GST

For high speed diesel:

Refined HSD (High-speed diesel) is purchased from Gulf market for just 31 Rupees liter and then the government slaps the following charges on it:

• 2.35 Distribution charges
• 2.60 Rupees Dealer margin
• 8 Rupees Petroleum levy
• 47 percent GST
• 1.71 FED charges

Refined high speed diesel is purchased from Gulf market for Rs 31 per litre. However, the petroleum product is bulked up with taxes for the locals which include Rs 2.35 distribution charges, Rs 2.60 dealer margin, Rs 8 petroleum levy, 47 percent GST and Rs 1.71 fred charges.

Opposition and the ruling PPP jointly tabled the resolution demanding a 31.25 Rupees reduction in petrol prices to fix it at 40 Rupees per liter.