The government is eager to uphold current petrol prices in the imminent month of September 2017; reliable sources report. Although reports are extremely tending towards this statement; Pakistan’s regulatory authority (OGRA) has up till now to forward its routine summary to the applicable ministry in sequence to evaluate the prices of petroleum products.
It is relevant to state that a report reveal the considerable profit making by Pakistani government by the sale-purchase of petrol. More purposely, the government is selling petrol to the public with 60% profit yield. Conversely, one school of thought argue that the sale of petroleum product is a chief source of revenue generation for the government; so the imposition of sales tax on them. Bearing in mind the riotous political climate of Pakistan in August, the government accepted only half of the price reduction proposed by the regulator for both, High-Speed Diesel and Petrol.
August – A month of tense situations or a rip-off?
Contrastingly the customary practice for the declaration of new (petroleum products’) tariff on 1st, things took a diverse turn amidst the political turmoil. As coined by many analysts, the state affairs undergo a ‘limbo’ in the wake of Premiere’s departure. On the other hand, a rapid substitute at the Prime Minister’s office and the following selection of new cabinet saw the approval of only half the price tariff planned by the regulator (OGRA) for petrol and high-speed diesel. The residual is being absorbed by the increase in sales tax on petrol and high-speed diesel.
On July 31, in an abrupt statement, the Finance Division spokesperson highlighted that prices of petroleum products would be set aside unaffected in anticipation of a decision was taken by the capable authority. And once the new prime minister and cabinet took charge, the respective authorities cut the prices of petrol and diesel. The tariff for the month of August is:
• Petrol Rs 69.50/L
• High-Speed Diesel Rs 77.40/L
• Kerosene Oil Rs 44/L
• Light Speed Diesel Rs 44/L
The thing to clarify here is the summary sent by OGRA (Oil and Gas Authority) to the worried ministries. The regulator had planned that prices for petrol and high-speed diesel should be cut from August. Following is the suggested tariff by OGRA for August 2017:
• Petrol Rs 67.63/L
• High-Speed Diesel Rs 74.83/L
• Kerosene Oil Rs 57/L
• Light Speed Diesel Rs 54.01/L
As per the regulator’s summary, the price of high-speed diesel was hypothetically to be cut by Rs5.07 per litre and was highlighted to add a good effect on the rate of inflation. Petrol price was suggested to be slashed by Rs 3.67. The highlight of this summary by far was the suggested increase in Kerosene Oil and light speed diesel oil, Rs 13/L & Rs 10.01/L correspondingly. The prices of (Kerosene Oil & Light Speed Diesel) was maintained at Rs 44/L.
It is tricky to locate any conclusion devoid of bearing in mind OGRA’s summary to relevant authorities and their remarks on it; both of which have so far to take place. In eagerness of government announces, the petroleum products will persist to be sold on the existing tariff till 31st August.
