Prime Minister Shahbaz Sharif has rejected the summary of increase in prices of petroleum products

Prime Minister Shahbaz Sharif has rejected the Oil and Gas Regulatory Authority (OGRA) summary of increase in prices of petroleum products, ...

Prime Minister Shahbaz Sharif has rejected the Oil and Gas Regulatory Authority (OGRA) summary of increase in prices of petroleum products, after which prices of petroleum products will now remain at current levels for next 15 days.

 

Prime Minister Shahbaz Sharif was addressing an Iftar dinner in honor of the leaders of the coalition parties in Islamabad. Photo: MAK NEWS-21

Addressing an Iftar dinner in honor of the leaders of the ruling coalition parties in Islamabad, Prime Minister Shahbaz Sharif said that he had rejected the summary of increase in prices of petroleum products.

After the rejection of the summary by Prime Minister Shahbaz Sharif, the price of petrol and high speed diesel will remain at Rs 149.86 and Rs 144.15 per liter respectively.

Similarly, the price of kerosene and light diesel oil will be Rs 125.56 and Rs 118.31 per liter respectively.

Prime Minister Shahbaz Sharif said that OGRA had recommended to increase the price of petrol by Rs. 21 per liter and the price of other products by Rs. 50 per liter. We have rejected the OGRA summary.

Addressing the Iftar dinner, he said that the people do not know what the government of Pakistan Tehreek-e-Insaf (PTI) did so that the people would criticize us.

The Prime Minister said that the PTI government did not deliberately increase the prices of petroleum products, they would find a middle ground on petroleum products.

On the occasion, Prime Minister Shahbaz Sharif thanked the allied parties for their support for the PM job and said that they would work with the allies to get the country out of the difficult situation.

Shahbaz Sharif further said that the federal cabinet will be sworn in soon, the PM House will have officers from all the provinces, will take all measures for the welfare of the people. Done, nobody cares.

Read also: Government first test, OGRA proposes major hike in prices of petroleum products

It may be recalled that a few days after the overthrow of the PTI government, OGRA had proposed a dramatic increase in the prices of petroleum products up to Rs 120 per liter (over 83%).

The increase was to take effect on April 16 for full import costs, exchange rate losses and maximum tax collection.

Top sources in OGRA and Petroleum Division had confirmed that the regulator had offered the government two options for raising prices for the next 15 days for review on Friday (today). Is the most

In this situation, Prime Minister Shahbaz Sharif had to decide whether to end the four-month (till June 30) price freeze announced by his predecessor Imran Khan on February 28 or not.

Also read: Petroleum product price reduction notification issued

OGRA had said in its summary that both options have been worked out under the PTI government's policy guideline dated August 24, 2020, for which the existing sales tax and petroleum levy rates as well as the law at the time of the 15th review would be considered. Calculation is required based on the full rate of legitimate tax.

OGRA working paper suggested that based on the current tax rates, which are zero, the prices of all products should be increased in the band of Rs. Prices can be charged.

Under this option, the ex-depot price of High Speed ​​Diesel (HSD) was fixed at Rs 195.67 per liter, an increase of Rs 51.52 or 35.7 per cent over the current rate of Rs 144.15.

Read also: Prime Minister address to the nation, petrol 10 rupees cheaper, electricity announced to reduce 5 rupees per unit

The second scenario of price proposed by OGRA was based on full tax rates including 17% general sales tax on all products, Rs 30 per liter on HSD and petrol, Rs 12 per liter on kerosene and light diesel. Oil includes a petroleum levy of Rs 10 per liter.

It may be recalled that the reduction in petrol and electricity prices was announced by former Prime Minister Imran Khan during his address to the nation on February 28.

In view of Imran Khan announcement, OGRA had on March 1 issued a formal notification to reduce the price of petrol and diesel.

OGRA had proposed an increase of Rs 10 per liter in prices of petroleum products after February 28, but Prime Minister Imran Khan not only rejected it but also announced a Rs 10 reduction in prices to provide relief to consumers.