- Petrol purchased for Rs 37 per litre from international market being sold for Rs 76.26
While petrol has hit the lowest price of $25 per barrel in international market, the Pakistan government is charging more than twofold per litre under taxes.
At present, the government is buying petrol from international market at a rate of Rs 37 per litre but it is selling the petroleum product for Rs 76.26 per litre. High speed diesel stands at 80.79 per litre in the country.
The Pakistan State Oil (PSO) is purchasing Arab Light Oil from Gulf market for $25 per barrel.
The government is pocketing Rs 3.76 transportation charges, Rs 2.35 distribution margin, Rs 3.8 dealer margin, Rs 10 petroleum levy and 21 per cent general sales tax (GST).
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 freight charges.
The government can relieve the people by cutting GST and petroleum levy.
On the other hand, the Oil and Gas Regulatory Authority (OGRA) on Friday forwarded a summary to the Finance Ministry recommending a reduction of only 10 per cent in the prices of petroleum products.
Through the summary, the ministry was asked to decrease petrol price by Rs 7.56, high speed diesel and high octane by Rs 10.15 whereas kerosene by Rs 8.17 from February 1.
In case the summary is approved by Prime Minister Nawaz Sharif, light diesel will undergo a price cut of Rs 7.36.
Separately, a resolution proposing to fix petrol price as Rs 40 per liter was moved in the Punjab Assembly.
The resolution filed by Opposition Leader Mehmoodur Rasheed stated that petroleum products’ prices in the global market are on the lowest level therefore it is being demanded from the federal government to provide relief to the people.