ISLAMABAD: Prime Minister Imran Khan decided to defer the hike in petroleum product prices for the next 15 days, after invoking all the tough conditions of the IMF ahead of the upcoming fund's executive board meeting.
According to the official announcement made by the Finance Ministry here on Monday, which stated that petroleum products are showing substantial growth in the international market and are currently trading at the highest level since 2014. Prime Minister Imran Khan said that the government will bear the loss in the form of petroleum products. The prices are rising in the international market but the government wants to save the people from inflation.
Oil prices have seen a rise of 14.5 percent in the global market only last month. The current sales tax rate and petroleum levy on various petroleum products are well below the budget target. The government is incurring a revenue deficit of around Rs 30 billion (fortnightly) due to budgeting of existing PL and ST rates and Rs 260 billion annually due to lower ST rates.
Despite the revenue deficit due to rising petroleum prices globally, the Prime Minister deferred Ogra's proposal to increase petroleum product prices by up to Rs 16.79/litre and desired that petroleum product prices will be increased from February 1, 2020. shall remain the same as notified earlier. January 15, 2022 to provide maximum relief to the general public. The Prime Minister has expressed his desire to keep prices at the same level through adjustments in sales tax, if necessary.