Reduction in oil prices: ICCI urges govt to make proportionate cut in power, gas tariffs

Islamabad: The Islamabad Chamber of Commerce & Industry (ICCI) has called upon the government to make a proportionate cut in the prices of electricity and gas as has been made in the prices of petroleum products that would reduce the high cost of doing business, bring down inflation and provide good relief to the common man in these difficult times.

Muhammad Ahmed Waheed, President, Islamabad Chamber of Commerce & Industry said that in these tough circumstances, the government has taken a good decision by reducing prices of petroleum products from 15-38 per cent that would bring down production cost and provide important relief to people. However, he urged that the government should also make a proportionate cut in the prices of electricity and gas prices that would further reduce the cost of doing business and ease the burden of inflation-stricken people. He said that Pakistan was producing major share of electricity from thermal fuel while the oil prices in the international market have come down drastically. He said it was the best time for the government to cut energy prices to give crucial relief to the business sector and the general public.

The ICCI president said that at the one hand, the government has reduced prices of POL products, but at the other hand, it has further increased taxes and levy on these products that should be revised. He said that the government has increased tax of Rs.5.68 per litre on petrol, Rs.6.79 on HSD and Rs.14.06 per litre on kerosene oil. Similarly, petroleum levy of Rs.23.76 per litre has been increased on petrol, which was Rs.10 in January last year He said that petroleum levy on HSD has also been increased Rs.30 from Rs.8 of last year and Rs.18 on kerosene oil from Rs.6 of last year.

He said that the government has also increased GST up to Rs.17 on all POL products. However, he stressed that keeping in view the current difficulties of the business sector and the general public, the government should revise hike in taxes and levy on POL products to provide badly needed relief to the business community and people.