Daily Times

Pakistan-Industrial-and-Traders-Association-Front-(PIAF)The Pakistan Industrial and Traders Associations Front (PIAF) has lashed out at the government for increasing prices of three major petroleum products of petrol, diesel and liquefied petroleum gas, which will cause an additional burden of billions of rupees on consumers in this month.

In a joint statement issued here on Saturday, PIAF Chairman Mian Nauman Kabir and vice chairman Javed Siddiqi said that it is unfortunate that besides the 17% GST, the government has more than doubled the rate of petroleum levy on HSD and petrol in recent months.

PIAF Chairman said that The ex-depot price of petrol was raised to Rs109.20 per litre, showing an increase of Rs3.20 (2.90%). Petrol is mostly used in private transport, small vehicles, rickshaws and two-wheelers. He said that HSD is mostly used in heavy transport vehicles, trains and agricultural engines like trucks, buses, tractors, tubewells and threshers. This is one of the key contributors to inflation.

Mian Nauman Kabir said that the government is currently charging a standard rate of 17% general sales tax across the board on all products to generate additional revenue while petroleum levy is slightly lower than maximum permissible limit.

In revising the prices of petroleum products, the authorities increased the levy on petrol by about 80 paisa per litre for the rest of Jan 2021, as the government had collected about 33 percent higher than targeted revenue on petroleum products through the levy in the first six months of the current fiscal year. In this way, petroleum levy on both major products, including – petrol and HSD – came in at about Rs24 per litre.