Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi on Wednesday said categorically that the government did not earn a single additional penny on account of price reduction in petroleum products at the international level.
He said that Pakistan’s petroleum products prices were still the lowest as compared to other countries of the world.
He was concluding a two-day debate in the National Assembly on the motions for not passing on the benefits to the people and further burdening gas consumers on levy of Rs 101 billion in the country.
The minister said that the government had passed on benefit of Rs 41 per liter to people so far on account of reduction in petroleum prices in the international markets.
He said there was a clear directive of the prime minister to pass on the benefit to the masses.
Giving the comparison of petrol prices with other countries of the region, the minister said currently the price of petrol in India is Rs 100 per liter while it is Rs 130 per liter in Bangladesh, but in Pakistan its price is only Rs 71.25 per liter.
He said international oil markets did witness a significant reduction in the prices of petroleum products from $120 per barrel to $35 per barrel since February 2014. The government had been charging Rs 25.78 tax on petroleum products when its prices were $120 per barrel and now almost the same Rs 25.59 tax was being charged in the country.
He said all developed and European counties earned major chunk of their income from taxation on petroleum products.
He said the government has adopted a prudent policy in this regard and its prices are lowest as compared to other importing countries.
The minister refuted the opposition parties’ allegation that the government was going to overburden gas consumers with additional Rs 101 billion Gas Infrastructure Development Cess (CIDC).
He made it clear that the cost of gas pipeline would have to be borne by those who would utilise LNG and added that from this cushion the government would lay gas pipelines and make terminals.
He said that unfortunately no new pipeline was laid by any of the past governments, adding that power plants, fertilizers industries and CNG sector, running on gas, had been closed.
The energy crisis could not be overcome without the availability of additional gas and addressing gas-related issues, he added.
Khaqan Abbasi for God sake stop keep telling lies such as the cheap fuel prices etc. The huge increases in food prices on the market floor is a proof of your false and dishonest claims
Mr Khakan Abbasi, your futile verbal juggling and meaningless acrobatics do not wash with an average Pakistani. In fact you are making a laughing stock of your self.
One does not need a degree in economics to determine whether the price of fuel is high or low, mundane common sense is well equipped to draw that distinction. You are either very naive to make such statement, or you are trying to hoodwink at best. Price of a daily item cannot be classed as high or low in isolation. What is the percentage cost of fuel in comparison with total cost burden of daily necessities plus direct and indirect tax cost burden on an average gross income of an average Pakistani. If an average member of public is burdened with lower direct and indirect taxes, he / she can endure a higher prices including the fuel price. On the other hand, if an average Pakistani is over burdened with direct and indirect taxes, with high price of daily needs in addition, even a low fuel price becomes a very high price. It is the the last straw that breaks the camels back. Your price comparison with other South Asian countries is a red herring.
Comments are closed.