September 29, 2020

Prices Of Oil To Remain Flat At Current Level: Ministry Of Finance

Amid the falling oil prices in the international market, Pakistan’s authorities have decided to maintain the prices of oil at the current level. The government has said that the decision was taken because they are expecting an upward trend in the prices of oil since mid-September and expect the prices to be on the upper side in November. Moreover, the government has also decided to increase the prices of LPG by 11% to 125.05/kg from 112.54/kg, due to increased manufacturing costs of the commodity.

OGRA had recommended a decrease of 2.65% in the petroleum products, given that the international prices of crude had decreased to $59/barrel from $63/barrel. The government would earn almost Rs4.2 billion in revenue by not decreasing the oil prices for October. The Ministry of Finance has said that, “The government has decided to maintain the prices of petroleum products at the current level to offset expected increase in the prices of oil in the upcoming month of November.”

The government is already charging huge levies and taxes on petroleum products to cater for the revenue shortfalls faced by the FBR. The taxes and levies imposed on petroleum products still remain the most important revenue generation entity, due to the massive and ever-increasing consumption of oil in the country.

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