Lahore, February 01, 2019 (PPI-OT): The All Pakistan Business Forum has expressed its serious concern for not passing on full relief to the public of oil price cut in global market as the government rejected the OGRA’s recommendation of reducing petrol rate by Rs4.68 per litre for Feb, besides increasing Petroleum Levy by 125%.
APBF President Syed Maaz Mahmood observed that OGRA had recommended cut in the prices of almost all petroleum products due to falling oil prices in the international market which was not passed on to the public and industry fully.
He said that the reduction could be much bigger in case the entire impact of lower international prices would have been passed on to the consumers. He said that in view of international oil prices the HSD rates could be reduced by Rs14 per litre but the government rather increased the Petroleum Levy by Rs10 per litre so that relief could not be passed on to the masses. He said that earlier Petroleum Levy on HSD was Rs8 per litre and Petrol Rs10 per litre but since Jan 2019 the consumers are paying Rs18 per litre Levy on HSD, Rs14 per litre on Petrol, Rs6 on Kerosene oil and Rs3 on LDO.
He asked the government to take measures for reduction of production cost in consultation with the stakeholders for sustainable economic growth. He said that all issues can be handled by the government by focusing on some major areas particularly the ease of doing business. He said regulatory duties on all the raw materials should also be eliminated to reduce the cost of doing business and making manufacturing sector competitive.
APBF president said that the government has transferred only 26 per cent of the OGRA recommended relief on Diesel prices to the consumers. On Petrol around 51 per cent of the OGRA recommended relief was transferred to the consumers. Instead of providing full relief to the consumers, the government had increased GST and Petroleum Levy on Petrol and HSD. Currently, the government is charging 17 per cent GST on the POL products.
He argued that the high cost of doing business is hindering Pakistan in achieving its export target. High Speed Diesel is being used in agriculture while LDO is used in the industry. Syed Maaz Mahmood said that the domestic petroleum product prices in the country remained fluctuated upward and downward due to international oil pricing trend. The governments failed to provide relief of reduction of the prices to the consumers and always tried to gain maximum benefit of the changes of these prices.
He said that the prices at the international level keep fluctuating in the last couple of years due to disturbance in the oil-producing countries and converting from oil to the other alternative sources of energy but the government in Pakistan only passed on hike in rates. Whenever prices came down the full benefit was not passed on to the public.
For more information, contact:
All Pakistan Business Forum (APBF)
Suite # 908, 9th Floor, EDEN Heights,
6-Main Gulberg, Jail Road, Lahore, Pakistan
Tel: +92-42-35786767, +92-42-35088717
Category: General Business News