Govt decides to slash POL prices

ISLAMABAD: Prime Minister Shehbaz Sharif Monday announced a reduction in the prices of petroleum products and directed the ministries concerned to send a summary to him in this regard.

“The prime minister, while deciding to give a good news on Eid-ul-Azha, has announced passing on the benefit of reduction of oil prices in the international market to the people,” the Prime Minister’s Office (PMO) in a statement said.

The statement said the prime minister, while chairing a meeting in Lahore Monday, also directed the finance and petroleum ministries to send a summary suggesting reduction in prices of petroleum products to him. “The people have experienced difficult times and relief is their right,” Shehbaz Sharif said.

He directed the two ministries that consumers should get complete relief in a transparent way in conformity with reduction in prices of crude oil in the international market. He maintained that the incumbent government would continue to make all-out efforts to heal wounds of people hit by price-hike. “By the grace of Almighty Allah, we will bring more relief in the lives of people in coming days,” he maintained.

The meeting chaired by the prime minister was also attended by officials from the ministries concerned and the Oil and Gas Regulatory Authority (Ogra). It is expected that the reduced prices of petroleum products would take effect from July 16.

It may be pointed out that the US WTI crude oil price in the last 24 hours dropped further to below $97 per barrel from $104.09 per barrel. It is expected that POL prices may reduce from July 16 by Rs8.08-22.31 per liter.

The relief in diesel price is likely to be at Rs22.31 per liter and in petrol price at Rs8.08 per liter. The solace in kerosene price has been worked out at Rs 21.26 per liter. It may be noted that in the existing price of diesel, there is a petroleum levy of Rs5 per liter, in the price of petrol, the petroleum levy stands at Rs10 per liter and in the price of kerosene, PL stands at Rs5 per liter.

In the price of furnace oil, which is used in IPPs for power generation, a massive relief has been worked at Rs12,981 per ton to Rs141,360 from Rs154,341 per ton. There is no petroleum levy on furnace oil.

“The international prices have come down a bit,” Federal Minister for Finance Miftah Ismail confirmed when his comments were sought over the proposal to reduce the POL prices in domestic market for the next 15 days with effect from July 16, 2022. The minister said that the proposed reduction would not affect the ongoing IMF parleys.

The official sources said that the government would keep petroleum levy unchanged for the next 15 days but the officials wondered how the government would be able to fetch Rs855 billion till end of the ongoing fiscal year. With the help of existing level of petroleum levy, the government can collect only Rs15 billion per month.