New Delhi: Ít is no secret that Pakistan’s economy is in the doldrums. In what could be another setback to the common man there, the prices of petrol and diesel may go up by Pakistani Rs 83.5 and Rs 119 per litre, respectively.
Pakistan’s new Prime Minister Shehbaz Sharif has said the country’s economy had stagnated under his predecessor Imran Khan, setting the tone that the people of the country have to face high inflation despite the change in leadership.
The Oil and Gas Regulatory Authority (OGRA) has proposed the federal government to make a massive hike in fuel prices, up to Rs 83.5 per litre on petrol and Rs 119 on diesel from Saturday.
The Authority regulating the oil and gas sector in Pakistan has sent a summary to the Petroleum Division making the proposal for this massive price hike.
The proposed hike was made on the basis of the 70 per cent of GST and Rs 30 per litre levy, ARY News reported citing sources.
Currently, for petrol and diesel, the prevalent levy stands at Rs 30 per litre and 17 per cent of GST. The authority has suggested enforcing an Rs 83.5 per litre hike on petrol on the basis of full levy and taxes, whereas, it was recommended to jack up Rs119 per litre on diesel.
For other petroleum products; Rs 77.31 hike was proposed for light diesel, Rs 36.5 on kerosine oil and Rs 38.89 on light diesel at the full tax rate and levy.
A final decision on the OGRA summary will be taken by the finance ministry after consulting Prime Minister Shehbaz Sharif, said sources.
In a Twitter message, Hammad Azhar, former energy minister and the current focal person for the economy of Pakistan Tehreek-e-Insaf (PTI) wrote, “At prevalent taxes, the rate increase OGRA has asked for is Rs 21/litre in Petrol and Rs 51/litre in Diesel. This is the differential that PTI govt was subsidising effectively to provide relief to the masses.”
“OGRA always depicts two options in its proposal; one with full taxes & one with prevalent. Media picked the figure with full taxes scenario,” added Azhar, reported the news channel. Azhar continued “We hope that the complete price differential mechanism built by us to provide relief to the masses will not be disturbed by imported govt.
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