On Monday, Prime Minister Shehbaz Sharif declared a decrease in the price of petroleum products and asked the relevant ministries to submit him a summary of the news.
The Prime Minister’s Office (PMO) issued a statement saying, “The prime minister has announced passing on the benefit of reduction of oil prices in the international market to the people.”
According to the statement, the prime minister gave orders to the finance and petroleum ministries to provide him a summary indicating a decrease in the price of petroleum products while presiding over a meeting on Monday in Lahore. Shehbaz Sharif stated that “The people have experienced difficult times and relief is their right.”
He gave the two ministries the order that consumers should receive total relief in a transparent manner in line with a decline in the price of crude oil on the global market.
He insisted that the current administration would continue to use every effort to mend the wounds of those affected by price increases. In the coming days, he insisted, “We will bring more relief in the lives of people by the grace of Almighty Allah.”
Officials from the relevant ministries and the Oil and Gas Regulatory Authority (OGRA) were present at the meeting, which was presided over by the prime minister.
The discounted prices for petroleum products are anticipated to start on July 16.
It should be noted that the price of US WTI crude oil fell from $104.09 per barrel to below $97 per barrel in the past 24 hours.
From July 16, POL prices are anticipated to drop by Rs. 8.08 to Rs. 22.31 per liter.
The reduction in petrol and diesel prices is anticipated to be Rs. 8.08 and Rs. 22.31 per liter, respectively. Kerosene’s price has been calculated to be Rs. 21.26 a liter, which is consolation.
It should be remembered that the current petroleum duty for diesel is Rs. 5 per liter, the petroleum levy for petrol is Rs. 10 per liter, and the petroleum levy for kerosene is Rs. 5 per liter.
There has been a significant reduction in the price of furnace oil, which is used in IPPs to generate electricity, have been worked from Rs. 12,981 per ton to Rs. 141,360 from Rs. 154,341 per ton. On furnace oil, there is no petroleum levy.
Federal Minister for Finance Miftah Ismail responded when asked about the idea to lower POL prices in the domestic market for the following 15 days starting on July 16, 2022, by saying that “the international prices have come down a bit.” The planned reduction, according to the minister, won’t have an impact on the current IMF negotiations.
According to official sources, the government will maintain the petroleum levy at the same level for the next 15 days, but authorities are unsure how they would raise Rs. 855 billion by the end of the current fiscal year.
Only Rs. 15 billion can be collected each month by the government using the current petroleum levy.
To read our blog on “PAC advocates lowering petroleum prices,” click here.
