PM rejects hike in petroleum prices for August

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PM rejects hike in petroleum prices for August

ISLAMABAD, July 30 (APP): Prime Minister Muhammad Nawaz Sharif has turned down an increase in the fuel prices proposed by the Oil and Gas Regulatory Authority (OGRA).

The prices of petroleum products would remain unchanged for the month of August 2016, Minister for Finance Muhammad Ishaq Dar announced here on Saturday.

“The OGRA had presented a summary to the Prime Minister proposing increase of oil prices by four to nine per cent which was rejected by the Prime Minister,” he added.

He said the government would have to absorb the financial impact of around Rs 2 billion in the form of revenue loss after the Prime Minister had decided not to burden the consumers.

Giving details, the minister said that the OGRA had proposed to increase the price of Petrol by Rs 2.12, the price of High Speed Diesel by Rs 0.26, the price of Kerosene Oil by Rs 3.94 and the price of High Octane Blended Component (HOBC) by Rs 0.60. The OGRA had also proposed to reduce the price of Light Diesel Oil by Rs 1.24.

He said for August 2016, the price of Petrol would be kept unchanged at Rs 64.27 per liter, HSD at Rs 72.52, Kerosene Oil at Rs 43.25, HOBC at Rs 72.68 and Light Diesel Oil at Rs 43.35.

The minister dispelled the impression that the current government had imposed extra duties on petroleum products.

Giving comparison in this regard, Ishaq Dar said the General
Sales Tax (GST) on Petrol in March, 2013 was Rs 14.70 per liter and Petroleum Development Levy (PDL) was Rs 10 per liter , which will reduce to Rs 9.34 and Rs 8.19 respectivly on August 01, 2016 It is worth mentioning that on March 1, 2013 petrol per liter was sold at Rs 106.60, with Rs 14.70 GST and Rs10 PDL, HSD at Rs 113.56 carrying Rs 15.66 GST and Rs 8 PDL, Kerosene oil at Rs 103.69 with Rs 14.30 GST and Rs 6 PDL, HOBC at Rs140.06 with Rs 19.32 GST and Rs 14 PDL, and LDO at Rs98.26 with Rs 13.55 GST and Rs 3 PDL per liter.

The GST and PDL on petroleum products will remain unchanged during the upcoming month of August, i.e. on HSD Rs 15.86 and Rs 7.80, Kerosene Rs 2.06 and Rs 3.09, HOBC Rs 10.56 and Rs 13.49, and LDO Rs 3.40 and Rs 2.86 respectively.