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ISLAMABAD / LAHORE: The government announced a reduction in prices of petroleum products by Rs5 per litre on Saturday.
Petrol will be available at Rs71.25 per litre and high speed diesel at Rs75.79 from Feb 1, according to a notification.
Instead of passing on full benefit to the consumer of reduced oil prices in the international market, the government decided to amend the sales tax collection mechanism to stop about Rs5 from going to them.
The government will still bag Rs25 in terms of taxes and levies on every litre of petrol.
According to the notification, a fixed sales tax of Rs14.58 per litre has been imposed on petrol. Earlier the rate was 20 per cent of the petrol price, or Rs10-12 per litre.
Similarly, the government has fixed the sales tax at Rs29.57 per litre on high speed diesel (HSD). Earlier it was 34pc, or around Rs12-15 per litre.
HSD is the largest selling petroleum fuel in the country because it is consumed in heavy vehicles and generators.
The government will now receive Rs38 per litre on HSD in terms of taxes and levies.
Apart from fixing the sales tax amount instead of collections based on percentage, the government has ensured maximum collections from petroleum products.
Sates tax of Rs18.57 per litre has been imposed on HOBC, Rs10.40 on kerosene and Rs9.63 per litre on light diesel oil (LDO) in the amended notification.
The new price of HOBC is Rs75.66 per litre, kerosene Rs43.25 and LDO Rs39.94.
Prime Minister Nawaz Sharif said in Lahore that prices of petrol and diesel had been further reduced by Rs5 per litre.
Talking to jounalists, the prime minister told newsmen “Inflation rate has also fallen below two per cent.”
He said economic performance of Pakistan had been acknowledged by world institutions and its foreign reserves had gone up to $21 billion.
Mr Sharif claimed that the benefits of economic policies had started reaching people. With the decrease in rates of petroleum products, he said, the prices of other daily-use items would come down. He said the country had been put on the path of peace, progress and prosperity.
The prime minister said the government took aggressive steps to significantly reduce power outages that helped revive the functioning of industry.
Finance Minister Ishaq Dar said in a statement that “the prices announced for the month of February are another manifestation of the government’s resolve to provide maximum facilitation to the general public”.
Published in Dawn, January 31st, 2016
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Comments (43) Closed
Jan 31, 2016 08:46am
Shame on the govt.
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Jan 31, 2016 09:02am
Example of Bad Governance in Pakistan.
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Jan 31, 2016 09:20am
Why do we ask for prices reducing according to international standards.we never asked for that wen the price was 140 $ a barrel.that time it was subsidised by the gov heavily.Now its time you pay it back.poor dont use petrol.Rich should not be given this benefit.
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Jan 31, 2016 09:33am
Finance Minister Ishaq Dar said in a statement that “the prices announced for the month of February are another manifestation of the government’s resolve to provide maximum facilitation to the general public.
He has no shame, What has he done, prices gone down internationally, and government still fail to pass the benefit to the ordinary people, increasing taxes. It is simply shameful
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Jan 31, 2016 09:41am
Shame on all govts --- present and past.
The politicians and the establishment people are a breed of Barahmin cast and all others are of low caste.
So why benefit people after all they are serfs of them.
It is time to raise voice through streets and social media. Whatever the claims of Mr PM and Finance Minister are all false. They have no idea of people's miseries.
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Jan 31, 2016 09:53am
Such decisions show credibility of government. They are ruthlessly fleecing our blood.
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Jan 31, 2016 09:59am
Shameless PML-N. Making billions out of poor people.
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Jan 31, 2016 10:07am
@Imad Why shame on the government. We have the lowest prices of petrol in the South Asia right now. India has infact increased their prices and our government is decreasing. We have one of the lowest Tax-GDP ratio (10 % ) of the world. Most of the our businessmen do not pay a penny as Tax. So how the government will generate any Revenue?. Kindly be realistic. Free lunches cannot be available all the time. We have one of the lowest rate of tax payers in the world in ratio with the Population, but in return we want benefits of the Most developed nations. In my view the government should sustain the prices and should invest that revenue in Energy projects.
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Jan 31, 2016 10:09am
@Nadeem Ahmed Bad governance how?. Kindly explain?. Our traders, farmers and businessmen enjoy a tax free life and you want amenities like you are living in an Oil or mineral rich nation. Start paying taxes so that the government do not have to live on some resources like taxes on Oil to sustain.
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Jan 31, 2016 10:14am
@Imad .What shame in it.You dont pay taxes.Bribe almost every one in the country.And than yoy expect to reduce the price more just because you all have become so cheap that yo can afford to have a car of more than 2 million rupees but cant put petrol.
Cometo Uk and pay for the petrol .You will understand it.
Itnay be na shukra hona is not good.
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Jan 31, 2016 10:41am
Price of petroleum products in pak lowest in region.good work pmln.
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Jan 31, 2016 11:04am
shame on u all ov u u are looting the public ....
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Jan 31, 2016 11:20am
What else money lusters provide to poor people???petrol price in Japan is 1$ per liter but in purchasing power parity its equal to 10 cents per litre. In Pakistan it should be around 40 rupees per litre.
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Jan 31, 2016 11:22am
Good decision by the government... always Pakistan first...
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Jan 31, 2016 11:23am
@Imad
Shame also on the government ministers who are presenting this meager relief to people as something very extraordinary and as a very big favor to people from them.
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Jan 31, 2016 11:26am
@Fast
Corruption highest in the region. Is this also good work by PML-N?
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Jan 31, 2016 11:28am
We need to be realistic. Make up your own minds after looking at prices of other countries. These prices are as of Jan 25, 2016.
Pakistan = 0.73 $/lit
Egypt = 0.80 $/lit
Sri Lanka = 0.89 $/lit
China = 0.90 $/lit
Nepal = 0.91 $/lit
Iraq = 0.91 $/lit
India = 0.92 $/lit
Bangladesh = 1.23 $/lit
Turkey = 1.40 $/lit
Hong Kong = 1.79 $/lit
Some countries with lower prices than Pakistan are as under:
Yemen = 0.70 $/lit
Indonesia = 0.61 $/lit
USA = 0.56 $/lit
UAE = 0.43 $/lit
Qatar = 0.36 $/lit
Saudi Arabia = 0.24 $/lit
Venezuela = 0.02 $/lit
Al Hamd o Lillah
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Jan 31, 2016 11:43am
Petrol at Rs 75/L is much cheaper than in EU, where it is about 1Eur/L, ie about Rs 150! At 75/L it is just slightly higher than US. The price in Pakistan should be around the EU level, and 2x the US level.
Govt: please raise price if petroleum fuel to double current.
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Jan 31, 2016 11:53am
The IMF Minister/Ministry will never ever pass full benefit to common man...!!!
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Jan 31, 2016 12:01pm
Atleast some relief to common man.
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Jan 31, 2016 12:02pm
@Sonic Bang - wrong prices! please don't mislead readers.
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Jan 31, 2016 12:11pm
@Malik
You should also be realistic. What the PML-N government is doing is never done in a civilized country. If the tax to GDP ratio is low, whose fault is it? Why doesn't the government take the tax evaders to task? The answer is simple, because most of its ministers, Senators, MNAs and MPAs are themselves tax evaders. Those who do pay, pay shamefully very small tax.
If the government can bring Uzair Baloch back to Pakistan, why can't it hold those defaulters accountable who are already in Pakistan?
Well let them enjoy at the expense of the poor masses, but the day of reckoning is very near.
And by the way, Imran Khan is also lost somewhere. Why doesn't he focus on the wrong doings of the government and bring the issues for discussion in the two houses? He is most probably a spent force now and capable only of playing to the gallery.
Chief of Jamaat-e-Islami has now thought of something brilliant.He now wants to start campaign against corruption after 68 years of independence.
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Jan 31, 2016 12:23pm
@Dilectus Google it please. prices of petroleum products are lowest in pak in whole region.
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Jan 31, 2016 12:24pm
@khara aur karwa such source of your info??? It seems you are living in some other world
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Jan 31, 2016 12:25pm
@Sonic Bang best, factual and the most informative comment of the day
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Jan 31, 2016 12:26pm
@Dilectus these are the actual prices just google them
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Jan 31, 2016 01:40pm
For everyone saying that POL price is lower than many countries in the region and are comparing with prices in EU, Japan, and USA, add the following info as well for a complete picture
GDP
Earning per capita
Exchange rate
CPI
Inflation
interest rate
to name a few.
Besides government is boasting of reserves being close to $22 billion they forget to mention the IMF loan, the Saudi gift, and the savings because of low price of crude in the international market. Once the price of crude starts going up the reserves will begin to deplete as it happened in 2007.
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Jan 31, 2016 02:57pm
The price drop should have been a lot more then 5 rupees per litre. The petrol price should be between 40-45 rupees per litre. In addition this should have been done long long time ago. This corrupt to the core government is robbing common man who is already struggling with inflation.
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Jan 31, 2016 03:28pm
The world is full of such stories... Even the managers of international airlines have not reduced air fare...
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Jan 31, 2016 04:01pm
only five rupees...while the prices of oil dropped to almost half.. the direction we are heading the government will soon tax people for the air they breathe... In this Pakistan nothing can be said to be certain, except death and taxes.When the oligarch, politicians, bureaucrats, politicians, land lords wake up in the morning, they feel like billionaires without paying taxes....
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Jan 31, 2016 04:08pm
@kpk The province known as KP has the highest line losses in Pakistan. 40 percent of your population never pay any bills of electricity. Still you get the full royalty. You use free electricity of up to 100 billion rupees. Obviously federal government bails you out. So wit this attitude you are still vying for more.? We have to get taxes from oil so that we can pay for your free usage of electricity and smuggling from Afghanistan.
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Jan 31, 2016 04:18pm
@Sonic Bang ... those countries where govts are stealing money out of consumer's pocket they will not bring prices at par and those govts who are taking care of their people are always strong, getting stronger and will remain by keep all prices at par where their nations don feel robbed.... this is difference between countries where people are take care of by govts .... and in certain countries 'govt' is taken care of by such fools where they are used as 'voters' with no respect and dignity.
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Jan 31, 2016 04:25pm
@ Hasan - I am not in favor of those who do not pay for utility bills BUT they are doing right in this case vs PMLN in particular. in 3 tenures until now this govt had done cosmetics of land alone, motorway, metros, yellow cabs... 3 tenures 3 achievements. show me one single bills which is brought to the table in NA by this govt for the benefit , comfort, for the sake of nation... without having attached strings of 'interest'. ?
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Jan 31, 2016 04:51pm
@Sonic Bang dear you need to work more..merely quoting the prices of other countries in dollar is nothing except making fool yourself. These prices should be calculated on purchasing power parity basis than one can have the right idea of prices in Pakistan.
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Jan 31, 2016 05:00pm
All actions from PMLN government speak of hostile policies towards poor. I saw many people referring to Prices in India, should I mention ad of today Diesel prices are equivalent to 74.2 PKR and petrol around 100 PKR. I hope advocates of PMLN wiuld know petrol price in Pakistan is around 75 and this is what ruch people need as mistly publuch owned vehicles are petrol based while publuc transport mistlt run on diesel. Government giving relief to rich and crushing poor, keep it up NS
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Jan 31, 2016 05:16pm
Just bought petrol for my car in lahore at the rate of 76/ liter. Its not Feb yet I guess.
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Jan 31, 2016 09:31pm
Govt. Of the day makes huge recovery of taxes indirectly which, otherwise they fail to meet the target through legal and correct means to fill their coffers. People find it hard to make both ends meet while the rulers get scot free and make big fortune at the cost of citizens.
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Jan 31, 2016 09:48pm
No reason to decrease prices. Petrol consumption is higher by people who own large cars. The common man in the bus doesn't consume a lot of petrol. The government should use the high oil prices to provide services for the poor people and not give tax breaks to the well-off.
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Jan 31, 2016 10:02pm
everybody wants facilities ,but nobody wants to pay taxes.shame on so called pakistanis.
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Jan 31, 2016 10:28pm
it is more than joke
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Jan 31, 2016 10:39pm
Is this a Joke of the Century!!! 50 rupees should be the price, because Petrol is cheaper. What about other product prices? milk 75 rupees, eggs 90 rupees, dals, oil and rice? when will there price come down? Subsidy should be given by the government in other products too.
Should we Pakistanis go to Iran and buy the barrel against 2100 rupees???
If Government fails to decrease the price up to 50 rupees, we private citizen of Pakistan will force to join the petroleum company and produce cheaper oil for Pakistanis.
@SONIC BANG look those countries geographical location, they all import oil.. than better tell us Pakistanis. Don't forget that Iran in our Neighbor Country. In Baluchistan Oil is cheaper than water.
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Jan 31, 2016 10:43pm
@Tamza
£1 per litre for both diesel and unleaded here. Difference he is than our basic unleaded is 95 RON and Pakistan is 87 RON. So 72 rs for 87 Ron fuel is good price. Pak fuel cheaper than in India.
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Jan 31, 2016 11:19pm
Should have done it a month ago nothing special about it. As per rough calculation its still above 3 times the amount the govt. pays for crude oil. Democratic govt. was supposed to be based on "by the people, of the people & for the people" principal. Unfortunately it has always turned out to be the exact opposite.
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