Dar breaks good, bad news on POL prices

Nov 30, -0001

ISLAMABAD: Federal Minister for Finance Ishaq Dar claims the prices of the Petroleum, Oil and Lubricants (POL) will be not be revised upwards before March 31, 2015, Samaa reported.

“The fuels and oils will not go dearer in the month of March given there’s no change in the international market” Dar told a press conference here on Friday.

He further said Prime Minister Nawaz Sharif had directed him to formulate a mechanism so that POL prices remain frozen until the end of next month. 

According to finance minister, the petroleum products will be sold at the following rates until April.

Product                        Rate

Petrol                           Rs70.29/liter

HOBC                             Rs80.31/liter

Kerosene Oil                Rs61.44/liter

Light Diesel                   Rs57.94/liter

Dar, while breaking the ‘good news’ also broke the hearts of consumers by saying that the status quo in prices was subject to a bearish world oil markets.

Going forward, the finance minister announced that the general sales tax (GST) rate, currently levied on the POL products, was being reduced from 28 to 19 percent, but talked around the questions of 'when would this slash take effect and how would it affect the aforementioned prices.

"But after using constitutional powers, the government will adjust the prices by reducing duties", he said adding, "Sales tax on petrol,  high octane, kerosene oil and light diesel would be reduced from 27 percent to around 18 percent, however on high speed diesel, the  sales tax would be increased from 27 percent to around 35 percent." 

The minister said that due to increase in the international petroleum prices, Oil & Gas Regulatory Authority (OGRA) had proposed to increase motor spirit (petrol) price by Rs 5.59 per liter, HOBC Rs 12.62, kerosene oil Rs 7.32, and light diesel Rs 5.5, while recommending a decrease in high speed diesel rate by Rs5.49 per liter.

"Petroleum Development Levy (PDL) will also be reduced by Rs 5.11 per liter on HOBC, Rs 2.6 on  kerosene oil, Rs 0.85 on light diesel, Rs 0.31 on high speed diesel and Rs 0.18 per liter on motor spirit," the minister said.

To a question, Dar said in Friday's meeting of parliamentary leaders, all the political parties, except for a few, endorsed the ruling Pakistan Muslim League-Nawaz (PMLN) stance on the 22nd constitutional amendment that would ensure transparency in senate elections.--SAMAA/Agencies

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