Actual price of petrol is Rs62.38, SC told

• CJP displeased with collusion of OGRA and PSO to increase petroleum prices through various taxes
• Says all institutions responsible for increasing prices will be held accountable

KARACHI: The Supreme Court was told on Thursday that the actual price of petrol is Rs62.38 per litre and all the amounts charged above that were various forms of taxes.

Chief Justice of Pakistan (CJP) Mian Saqib Nisar was hearing the case pertaining to the gradual increase in petrol prices. PSO Deputy Managing Director (DMD) Yacub Sattar was among others who appeared before the apex court.

“Through which laws and formulas are taxes being imposed?” Chief Justice Nisar asked. “People have been driven towards insanity due to the incessant imposition of taxes.”

The CJP also expressed his suspicions over the process of import of petroleum products. “The institution should inform the court about the rule under which the per liter price is fixed”, the CJP added.

The PSO deputy MD told the court that various institutions were defaulters of Rs300 billion. The chief justice asked why these institutions were not held accountable and why had they not returned loans amounting to Rs300 billion. He also asked whether these institutions were using bank loans to work.

Sattar informed the court that the actual price of petrol is Rs62.38 per litre. He added that Rs9.85 per litre tax was levied on the commodity, and inland freight equalisation margin of Rs8.83 was also added to the price.

The PSO DMD further said that oil marketing companies were earning Rs2.55 per litre while dealers were earning a commission of Rs3.35 per litre.

The federal government imposed a 15 per cent tax on petrol in May, which was reduced to 12 per cent in June, Sattar informed the court. “The price of petrol, after levying tax is Rs91.96 per litre,” he said.

The chief justice observed that the collusion of Oil and Gas Regulatory Authority (OGRA) and Pakistan State Oil (PSO) to increase prices of petrol had been brought to the apex court’s attention. He said that all institutions found responsible for increasing petroleum prices will be held accountable.

“All institutions will be held accountable,” Chief Justice Nisar said, expressing his dissatisfaction with PSO’s briefing on the matter.

Advocate Faisal Siddiqui was appointed as the judicial assistant and Sattar and Federal Board of Revenue (FBR) Chairman Tariq Mahmood Pasha were summoned by the apex court on Friday.

The hearing was then adjourned till June 21.