POL products prices unchanged till May 31

According to the State Minister for Information and Broadcasting Farrukh Habib, the prices of petroleum products would remain unchanged for the remaining days of the month.

The state minister announced that "The petroleum products price will remain the same till May 31," adding Prime Minister Imran Khan had decided not to burden the people despite increasing rates in the international market.

پیٹرولیم مصنوعات کی قیمتیں نہ بڑھانے سے حکومتی خزانہ کو2.77 ارب کا روپے بوجھ برداشت کرنا پڑے گا۔حکومت نے نہ صرف پیٹرولیم لیوی میں ا،یڈجسمنٹ کی بلکہ لائیٹ ڈیزل اور کیروسین آئل پر سیلز ٹیکس میں بھی کمی کی ہے

— Farrukh Habib (@FarrukhHabibISF) May 17, 2021

"The government has not only adjusted petroleum levy but also reduced the sales tax on light diesel and kerosene oil."

The minister claimed the national exchequer would suffer a loss of Rs2.77 billion if the rates of petroleum products are not increased.

Consequently, petrol will continue to cost Rs108.56 per litre, diesel Rs110.76 per litre, kerosene oil Rs80, and light diesel oil Rs77.65 per litre.

The new prices are announced following approval by Prime Minister Imran Khan.

Earlier the day, Oil and Gas Regulatory Authority (OGRA) had forwarded a summary to the Petroleum Division seeking revision of rates.

The regulatory authority has recommended an Rs1.90 per litre hike in the price of petrol while an Rs3.25 increase in that of diesel.

It is important to mention that PM Imran Khan had not increased POL product prices in April despite an increase in the rates internationally, and due to that, the national exchequer suffered a loss of Rs4.8 billion.

Earlier, a notification implying sales tax reduction on petroleum products was issued by the Federal Board of Revenue (FBR). According to the notification by FBR, the new sales tax on kerosene oil is reduced to 15.44 per cent from 17 per cent.

The sales tax on light diesel has been brought down to 7.56 per cent which was 17 per cent previously. The FBR added in the notification that the 17 per cent sales tax on petrol and high-octane petrol is retained.

The implementation of the new sales tax prices will be applicable from May 1.

According to government officials, the reduction in the sales tax is made to maintain the current prices of petroleum.

On April 30, the government rejected Ogra’s recommendation of increasing POL product prices and decided to retain rates of fuel products.