No change in petroleum prices

PM rejects Ogra Proposal of rising petroleum prices

ISLAMABAD: Finance Minister Ishaq Dar on Sunday announced that there would be no change in prices of petroleum products till May 31 to provide relief to the common people.

Dar said that in line with the Prime Minister’s instructions to provide maximum relief to the common man and keeping in view that Kerosene Oil and Light Diesel Oil (LDO) is used by the low income people, it has been decided to maintain the prices of these commodities at the current level till May 31.

He said that in order to maintain the prices of both Kerosene Oil and LDO at current levels, the government will be forgoing all applicable taxes and duties on these petroleum products. In the case of Kerosene Oil, a government subsidy will be provided to maintain the price at the current level, he added.

The Minister further announced that the Prime Minister has directed to maintain the prices of Petrol and High Speed Diesel at existing levels till May 31, 2017.

He said Petrol would be traded at Rs.74 per litre, High Speed Diesel Rs.83 per litre, light diesel and kerosene oil Rs. 44 per litre.
He highlighted that the government has absorbed significant impact of price increases since April 2016 and has suffered considerable loss of revenue.

During this period only partial increases have been passed on since December 2016. The government has to bear about Rs. 110 billion shortfall in revenue due to provision of subsidy on petroleum product during the current fiscal year, he added.

He said the government wanted to provide maximum relief to the people by not passing on hike in the petroleum products. Ministry of Petroleum and Natural Resources and OGRA had recommended an increase of Rs. 15.19/Litre in the price of Kerosene Oil, increase of Rs. 10.65/Litre in the price of Light Diesel Oil (LDO), decrease of Rs. 1.20/Litre in the price of MS 92 RON Petrol, and decrease of Rs. 1.10/Litre in the price of High Speed Diesel (HSD), with effect from 1st May 2017.

Source : Reuters

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