ISLAMABAD: Chief Justice of Pakistan (CJP) Mian Saqib Nisar on Sunday said that the rising petroleum prices is not a way for the government to make money.
The CJP expressed this concern while a three-member bench of the Supreme Court (SC) was hearing a case related to the same.
He said that 85 per cent of the fuel was imported from Saudi Arabia ‘on loan’ to fulfil the country’s requirement.
The caretaker government reduced the price of petrol by Rs4.26 on Sunday, a week after it increased the price by Rs7.5, following the directions from the apex court.
Furthermore, Justice Nisar questioned whether the statements claiming that ‘Pakistan is getting oil from Saudi Arabia on loan’ are true or not.
Following this, Pakistan State Oil (PSO) managing director replied, “We did import oil from Saudi Arabia, but not anymore.”
Having said that, Justice Nisar retorted with, “We need oil at the cheapest possible price for the common man.”
The CJP also questioned importing of oil from abroad via middlemen. He further lamented that commissions were received by the middlemen on these transactions.
Earlier, Justice Saqib Nisar asked for justification for the most recent increase of petroleum tax to Rs30 per litre.
“Why are petroleum prices rising? Why are customs duty and sales tax being levied on petroleum products? We want experts’ opinion on the [continuous price hikes],” the chief justice remarked.
Justice Ijazul Ahsan observed that it was an unfair policy, while Justice Umar Ata Bandial remarked that it equated to indirect taxation.
Effective July 1, additional taxes and duties to an amount of Rs70 billion have been imposed for the month of July. Consumers would pay Rs37.63 per litre on petrol, Rs17.19 on light diesel, 22.93 on kerosene and 52.24 on high-speed diesel. Good and Services Tax (GST) imposition on light diesel is Rs11.76 per litre, while Rs28.23 per litre is to be paid on high-speed diesel and Rs17.46 on petrol.
