ISLAMABAD, June 28: In a small piece of good news for the ordinary citizens of Pakistan, Dawn has learnt that petroleum prices, which contributed a hefty Rs315 billion to the national exchequer through taxes, are likely to witness a drop anywhere from one to four per cent on June 30. This reduction will be due to a decline in international oil prices.
According to a senior official, international diesel prices have witnessed the biggest drop in June, which will result in about a relief of about Rs3.75 per litre or 4 per cent in the high speed diesel prices.
Petrol (motor spirit) prices will also come down by about 90 paisa per litre while the prices of kerosene and high octane blending component (HOBC) will also drop by 50 to 70 paisa per litre.
The official said this would be the last time the government would announce through the Oil & Gas Regulatory Authority the prices of petroleum products in accordance with international prices.
He said the economic coordination committee was expected to take up the petroleum ministry’s proposal for deregulating the oil pricing mechanism which would enable refineries and marketing companies to fix ex-refinery and ex-depot prices independently. But the government taxes will remain unchanged. It should be remembered that the petrol price in Pakistan includes petroleum levy, general sales tax and the profit margins of the oil companies and dealers.
Besides a 16 per cent variable general sales tax on all petroleum products being charged to consumers, the government also collects a fixed petroleum levy at the rate of Rs10 per litre on petrol, Rs14 on high octane blending component, Rs6 on kerosene, Rs3 on LDO and Rs8 on high speed diesel.
The government is estimated to have collected about Rs115 billion as general sales tax from the domestic sale of petroleum products during financial year 2009-10 while it also recovered about Rs90 billion from POL imports. The total sales tax collection on petroleum products, therefore, stands at aboutRs205 billion. Likewise, the government netted about Rs108 billion during the current fiscal year on account of petroleum levy on oil products.
The government currently collects about Rs20 per litre on petrol, Rs26 on high octane blending component, Rs15 per litre on kerosene and Rs12 on light diesel oil from consumers. In addition, about Rs8.91 is paid to the oil companies and dealers on petrol, Rs11.93 per litre on High Octane, Rs3.23 per litre on kerosene and Rs4.27 on light diesel oil.
Tuesday, June 29, 2010
Global oil prices promise relief for consumers
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