Posted by Info Zone on 00:34:00 in Economic | No comments
Prime Minister Nawaz
Sharif announced major reduction in prices of petroleum products by up to 12
per cent for the current moth.
Details of
reduction in petroleum prices are as under:
Product
|
Price w.e.f 1st
February 2016
(Rs/litre)
|
New price w.e.f 1st March
2016
(Rs/litre)
|
MS (Petrol)
|
71.25
|
62.77
|
High Speed Diesel (HSD)
|
75.79
|
71.12
|
Kerosene Oil
|
43.25
|
43.25
|
Light Diesel Oil (LDO)
|
39.94
|
37.97
|
HOBC
|
75.66
|
72.62
|
Cumulative reduction
in the prices of petroleum products in the last one and half year (since 31st
August 2014) is as follows:
Product
|
Price
on 31st August 2014
(Rs/litre)
|
Price
on 1st March 2016
(Rs/litre)
|
Reduction
(Rs/litre)
|
Reduction
(%
age)
|
MS
(Petrol)
|
107.97
|
62.77
|
45.2
|
41.87%
|
High
Speed Diesel (HSD)
|
109.34
|
71.12
|
38.22
|
34.96%
|
Kerosene
Oil
|
97.05
|
43.25
|
53.8
|
55.43%
|
Light
Diesel Oil (LDO)
|
93.27
|
37.97
|
55.33
|
59.3%
|
HOBC
|
134.63
|
72.62
|
62
|
46
%
|
Neglecting the
shortfall in revenue, the government was focused to give priority to the
interest of the people and ensured to pass on every relief to the people, Prime
Minister Nawaz Sharif expressed.
The reduction in
prices is another manifestation of the government’s resolve to provide maximum
facilitation to the general public.
The benefits of
economic policies had started reaching people. With the decrease in rates of
petroleum products, the prices of other daily-use items would come down and the
country had been put on the path of peace, progress and prosperity.
The government took
aggressive steps to significantly reduce power outages that helped revive the
functioning of industry.
The diesel price was
reduced by 30 percent in the recent
past in Pakistan, whereas India just
cut it by only three paisas per litre.
Even the Prime Minister had rejected summaries of Oil and Gas Regulatory
Authority (OGRA) during the last three months, regarding increase in prices of
petroleum products as he did not want to burden people.
62 percent of the tax
being collected on petroleum products was distributed among provinces and now
the all provinces are free to pass on the relief to consumers in any form.
The average price of
petrol per litre around the globe was
$1.19 while its price in Pakistan
was only $0.73 per litre. Similarly, the average global price of high speed diesel was $1.05 per litre while
in Pakistan it was $0.79 per litre.
Pakistan had the
lowest prices of petroleum products as compared to other countries in South
Asian region including India, Bangladesh and Nepal.
Giving the comparison
of petrol prices with other countries of the region, currently the price of
petrol in India is Rs 100 per liter while it is Rs 130 per liter in Bangladesh,
but in Pakistan its price is only Rs 62.77 per liter.
No extra tax had been imposed over fuel items and the government
was collecting tax over petrol Rs 25.59 per litter against Rs 26 mentioned in
budget which was also less than 2014.
The prime minister has also directed transporters to
reduce fares so that the common man gets the benefit.
The
cut in oil prices is significant for the economy of Pakistan which would lead
to lowering the cost of doing business and accelerate economic activity.
Pakistan
also relies on fuel when it comes to power generation and a drop in oil prices
will help in a reduction in power prices.
The
recent reduction in oil prices will benefit the masses particularly agriculture
sector as it would reduce the cost of input.
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