ISLAMABAD: Finance Minister Asad Umar on Friday announced a reduction of Rs2 per litre in the prices of petrol and diesel.
During a press conference in Islamabad along with Minister of Planning Khusro Bakhtyar and Minister of State for Revenue Hammad Azhar, he told that the government has decided to decrease kerosene by Rs3 and light-diesel oil (LDO) by Rs5.
Umar maintained that sales tax on diesel was 27.5 percent and 15 percent on petrol in the last month of Pakistan Muslim League-Nawaz (PML-N) government.
When our government came, the prices went down at the end of August, he added.
“The prices of oil increased in international market. In October the price reached to 84 dollars,” he asserted. We reduced the levy on petrol from 8 to 6.51, said Umar.
“In November, the price of oil is as per 60 dollars,” he said.
Neglecting the 35 percent decrease in international oil prices, the Oil and Gas Regulatory Authority (OGRA) on Thursday recommended the government to increase price of motor spirit (petrol) by Rs5.21 per liter and high speed diesel (HSD) by Rs2 per liter for December 2018.
In monthly review for December, the OGRA also proposed an increase of Rs9.91 per liter in price of kerosene oil and Rs7.79 per liter increase in light diesel oil (LDO) price.
The oil has fallen by over 7pc to $50.42 in the US market. Within seven weeks, the price has decreased by over 30pc. Analysts believe that govt would likely give relief to inflation-riddled consumers.
While speaking about the surge in dollar price, he said that the decision is taken by the central bank. “The authority to fix the rate of monetary policy resides with the central bank,” he clarified.
“The demand of dollar is more while the supply is less,” said Umar.
“All this happened while maintaining an artificial value of rupee. Dollar was kept at a lower value and rupee at higher while using artificial means. We are trying to put fewer burdens on the nation. The increase in dollar price is not good,” he maintained.
Asad Umar told that the government is modifying trade and tax policies.
Pakistan rupee plunged almost five per cent to a record low Friday after what appeared to be a sixth devaluation by the central bank in the past year as the country struggles with an acute balance of payment crisis.
The unit sank to 143 rupees against the dollar just a day after Prime Minister Imran Khan s government celebrated 100 days in office with a televised conference boasting of its achievements.
The State Bank of Pakistan has indirectly devalued the state-managed unit several times already as it tries to narrow a huge balance of payments deficit.