Petroleum Price In Pakistan Is Still Too High
The price of crude oil in the world has fallen to $36 per barrel, down from $140s. However the price of petroleum in Pakistan remains artifically high because of Pakistan government’s artifical and high taxes and profit margins. This is unfair to the consumers as they are already facing inflation and higher food prices.
The government reduced petrol prices by Rs 29 per litre (from July to December) reflecting a 33.5 percent decrease. The price of petrol in the domestic market was Rs 86.66 per litre in July and Rs 57.66 per litre on December 15. Despite this drop, the Pakistani government is still earning Rs 30.24 per litre Petroleum Development Levy, and Rs 7.95 per litre GST from the consumers.
The price of light diesel oil (LDO) was reduced from Rs 56.50 per litre to Rs 48 per litre reflecting a decline of Rs 8.5 per litre or 15 percent. The government continues to charge Rs 12.40 per litre PDL and Rs 6.62 per litre GST on LDO. The Government slashed HOBC price by 25 percent – charging Rs 96.08 per litre in July and Rs 72.08 per litre on December 15. The PDL on HOBC is Rs 39.85 per litre, and Rs 9.94 per litre GST.
