Fuel up! It’s a new year | Pakistan Today

Fuel up! It’s a new year

PM announces another cut in POL prices: petrol reduced by (per litre) Rs 6.25, HOBC Rs 14.14, HSD Rs 7.86

Addressing a news conference at the Parliament House on Wednesday, Prime Minister Muhammad Nawaz Sharif Wednesday announced another big reduction in the prices of petroleum products.

The premier announced that petrol price is being reduced by Rs 6.25 per litre, HOBC by Rs 14.14 per litre, kerosene oil by Rs 11.26 per litre, light diesel oil by Rs 10.48 per litre and high speed diesel (HSD) by Rs 7.86 per litre.

The prime minister pointed out that since August, 2014, the government has passed on the benefit of Rs 400 billion through cut in POL prices to all sections of the society including transporters, agriculturists and industrialists. He said furnace oil is already being imported without general sales tax (GST).

Replying to a question about increase in GST by 5 percent on POL products, the prime minister said the government suffered a revenue loss of Rs 68 billion since July, 2014 and it would have gone to Rs 170 billion if the GST had not been increased. He said the recovery from 5 percent GST increase would be Rs 17 billion.

The premier pointed out that the government has to generate resources to meet unforeseen expenses such as compensation to flood affectees.

Asked if he was satisfied that the benefit of reduction in POL prices has been passed on to the common man, the prime minister said, “The transporters have not done so… It is a habit in Pakistan that we take advantage in cut in prices but do not pass on to the common man.”

PM Sharif said he will talk to the provincial governments to make sure that the benefits are being transferred at the grass root level.

Talking about electricity prices, the prime minister said that Rs 2.32 per unit reduction in electricity prices was announced earlier and the consumers will receive reduced bills in January. He hoped that with new hydel and coal plants coming in action, the price would be further lowered.

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