Petrol prices remain Unchanged
RECORDER REPORT
ISLAMABAD: The government has maintained prices of petroleum products at current level and revised upward the General Sale Tax (GST) rate on POL products during July 2019.
On Sunday, Ministry of Finance stated that the government has decided not to increase in the prices of petroleum products for the month of July and the existing price of June 2019 will remain unchanged for the month of July.
However, in an adjustment, the Federal Board of Revenue (FBR) has increased sales tax on Motor Spirit (MS) from existing 13 percent to 17 percent. Sales tax on High Speed Diesel (HSD) has also been increased from 13 percent to 17 percent. The standard rate of sales tax (17 percent) on Kerosene and Light Diesel Oil (LDO) has remained unchanged during July 2019.
Petroleum Division did not release any details regarding any change in the rates of petroleum levy on petroleum products for the month of July. The government rejected the recommended prices of Oil and Gas Regulatory Authority (OGRA) of ex depots prices of petroleum products for current month. On Friday, OGRA recommended a 77 paisa decrease in petrol prices for the month of July. OGRA also recommended an Rs2.30 increase in high-diesel and 26 paisa increase in the price of light diesel. It also recommended an Rs2.26 decrease in kerosene oil.
The prices of crude oil reduced to $64 per barrel in international market. In June, the government absorbed Rs 5 billion revenue shortfalls as full impact of prices were not pass on to the consumers.
In another move, the government decided to increase the price of CNG by 31 percent. The All Pakistan CNG Association on Sunday said notification for a 31 percent hike in the tariff of gas has been issued which will translate into an increase of Rs21 to Rs22 in the price of CNG in the provinces of Sindh, Khyber Pakhtunkhwa, and Balochistan. The province of Punjab will remain immune from the upward revision in the tariff of natural gas as the CNG stations in that province are using imported RLNG, it said.
According to the notification, the price of natural gas for the CNG sector has been increased from Rs980 per mmbtu to Rs1283 per mmbtu, the highest during the last decade, said Ghiyas Abdullah Paracha, Central Leader of APCNGA.
In a statement, he said that the formula for Sales Tax has also been changed which will increase the cost of economical fuel from Rs2.25 to 2.74 in different provinces.
Ghiyas Paracha said that new gas prices are unacceptable therefore the government should resolve this issue through consultations with the APCNGA and other stakeholders.
The decision will reduce the demand for gas, increase demand for petrol and add to oil import bill as well as environmental pollution, he said, adding that increased import of petrol will require foreign exchange which is not in line with the decision to save US dollars.
The decision is detrimental to the survival of Rs450 billion CNG industry which is providing jobs to million while it will increase transportation costs and fares and threaten budgets of poor rickshaw and taxi drivers.
