ISLAMABAD: The decline in oil prices in international market reflects a fall of Rs20 on the basis of free on board (FOB) for consumers in the next fortnightly rate review but indications are government will increase petroleum prices further as it is set to impose more taxes on petroleum products.
According to media reports, the government plans to collect Rs10.5% GST and Rs30 per liter PL, in addition to other charges like dealers’ and distributors’ margins.
The government expects to collect Rs60 billion as PL and Rs31 billion as GST per month. The price of petrol is presently Rs233.91 per liter, diesel Rs244.44 per liter, kerosene oil Rs199.40 per liter, and the price of light diesel oil is Rs191.75 per liter.
According to reports, the oil industry doesn’t see a reduction in the price of petrol in the next fortnight on the basis of FOB. The government is likely to further jack up the petroleum levy (PL) on petrol in the next fortnight, while arrears of exchange loss will still be adjusted in the petroleum prices.
The prices may also jump further if the government slapped sales tax on its sale, which has been frozen for the last six months.
The oil sector people said the government was yet to adjust the exchange loss, which was Rs23 per liter on petrol and Rs13 per liter on diesel.
They said that the average international petrol price during the fortnight was $103 per barrel, diesel $139 per barrel, and crude oil stood at $97 per barrel, while the average exchange rate was almost Rs217 per liter.
They said that consumers were unlikely to benefit from the price reduction in the international market, particularly in petrol and there may be a major increase in the price of diesel in the next fortnightly review.
