The prices of petroleum products for the month May 2017 will remain unchanged.
Minister for Finance Ishaq Dar while speaking to the media on Sunday said “The government will give subsidy to keep the prices unchanged,” he said. “We will also not charge sales tax.”
These products are used on a daily basis by people belonging to low-income households, which is why the government will make sure there is not a substantial increase in their prices, Dar said.
The Oil and Gas Regulatory Authority (OGRA) had submitted a petition to reduce the prices of petrol and diesel by Rs1 per litre. On the other hand, public expectation was a reduction of Rs2 per litre.
Although the reduction in prices hinders the Federal Bureau of Revenue from reaching their revenue targets, Dar maintained, the government will make sure the prices which were set on April 1 will remain the same throughout May.
On March 21, Dar had announced that the price of petrol and diesel will be raised by Rs1 per litre. With the increased prices, Petrol was to be sold at Rs74 per litre and Diesel at Rs84 per litre.
The decision was made in response to the OGRA’s summary, which it submitted to the Finance Ministry, seeking an increase of Rs 2.28 per litre and Rs 2.04 per litre in prices of petrol and diesel, respectively. A Rs13.76 per litre hike in the price of kerosene oil and Rs7.75 per litre increase in light diesel was also recommended.
