On Monday, Prime Minister Imran Khan deferred the recommendation of the Oil and Gas Regulatory Authority (OGRA) to raise the prices of petroleum products.
Shahbaz Gill, the Special Assistant to the Prime Minister on Political Communication, confirmed the news on Twitter.
“The prime minister had not approved the summary of increasing petrol price by Rs. 11 and diesel by Rs. 14,” the SAPM tweeted.
He stated that rising inflation had caused an increase in oil prices on the international market, but that the government would do all possible to safeguard the people from rising inflation.
“As a result,” he stated, “the prime minister has deferred this summary.” He went on to say that the government would shoulder the cost of the price hike instead.
“Substantial Increase” in Petroleum Products
Petroleum goods are showing a significant growth in the international market, according to a separate statement from the Finance ministry, and are currently trading at their highest level since 2014.
According to the ministry, oil prices in the worldwide market increased by 14.5 percent just last month. It went on to say that the current Sales Tax rate and Petroleum Levy on various petroleum items are much below the budgeted levels.
According to the statement, the government is losing roughly Rs. 30 billion fortnightly and Rs. 260 billion annually in revenue.
It added that, “despite revenue losses due to rising petroleum prices globally, the prime minister has deferred the proposal by OGRA to increase up to Rs. 16.79 per liter in the petroleum product prices and desired that petroleum product prices shall remain the same from February 1, 2022, as notified earlier on January 15, 2022, for providing maximum relief to the general public.”
“The premier has further desired to keep the prices at the same level through adjustments in Sales Tax, if required,” the statement said.
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