Islamabad: The government on Friday announced to keep prices of all petroleum products unchanged for March.
The government has also decided that increase the sales tax rate on high speed diesel to an unprecedented level of 37% in a bid to prevent what may otherwise have been a 6.8% reduction in its prices.
Earlier, the Oil and Gas Regulatory Authority (OGRA) recommended to increase the oil prices of four major petroleum products and reducing the prices of HSD rate for next month.
Finance Minister Ishaq Dar while addressing a news conference in Islamabad in Friday said that the government usually keeps OGRA recommendations unchanged, but this is the first time, the finance ministry have decided to maximise government tax collection.
Dar further added, that the tax rates on four oil products i.e. petrol, kerosene,light diesel and high-octane blended component (HOBC) – will be reduced from the elevated levels of 27% down to 18%, which is still higher than the 17% charged on most other goods and services
The reduction in taxes on these products would keep their prices level, despite an increase in global oil prices.
