Govt blames global price rise, rupee depreciation for hikes
Govt blames global price rise, rupee depreciation for hikes

ISLAMABAD: The government said on Saturday that the continuous depreciation of rupee against the US dollar and increase in the petrol prices in the international market have led to increase in the prices of petroleum products in the domestic market.

A spokesman of the Finance Ministry following increase in the petroleum prices claimed on Saturday that the government has passed on only eight percent increase in petroleum prices to the domestic consumers against 10 to 15 percent increase in the international market.

This was claimed by the spokesman of the finance Minister after more than Rs10 per litre increase in petroleum price, and resultant criticism by the opposition.

The Finance Ministry said that in the last fortnight, global oil prices have risen by 10 to 15 percent.

Govt increases petrol price by Rs10.49 per litre

The ministry further stated that prices of petroleum products are also rising due to the continuous depreciation of the rupee.

The government raises prices on the recommendations of the Oil and Gas Regulatory Authority (OGRA) and termed the reports as baseless that the government has increased the price by Rs10.50 against the recommendation of Rs5 increase, the ministry added.

We are collecting only Rs2.62 petroleum levy on kerosene oil, Rs5.62 on petroleum product, and 20 paisa on high-speed diesel and light sped diesel in view of the prices of petroleum products in the global market instead of Rs30 petroleum levy.

The government is currently collecting 6.84 per cent tax instead of 17 per cent sales tax.

Rising crude oil prices in the global market have created a crisis around the world and the government is fully aware of how to protect its people in the current situation and transfer the minimum increase to the people, said spokesman of the Finance Ministry.

The ministry said that Pakistan has the lowest prices of petroleum products compared to the other countries in the region including Bangladesh, Sri Lanka, and India, and the government would also try in the future to ensure that if the prices of petroleum products increase in the global market, then at least, the increase should be passed on to the people.

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