The government on Monday decided to keep fuel prices unchanged for the next fortnight.
In order to keep the fuel prices at the current levels, the government has increased ex-refinery prices by Rs5 on account of petroleum development levy and sales tax.
The Finance Division stated that despite revenue losses due to rising petroleum prices globally, the prime minister has deferred OGRAs proposal to increase price by up to Rs 16.79 per litre.
The petroleum product prices shall remain the same from February 1st, 2022 as to provide maximum relief to the general public.
The prime minister has further desired to keep the prices at the same level through adjustments in sales tax if required.
Petroleum products are showing a substantial increase in the international market and presently trading at the highest level since 2014.
The oil prices in the global market have witnessed an increase of 14.5 per cent just in the last month.
The government is bearing a revenue loss of around Rs30 billion on a fortnightly basis due to existing versus budgeted petroleum levy and sales tax rates.
According to Ismail Iqbal Securities (Pvt) Ltd, the new ex-refinery price from February 1, 2022 will be Rs121.68 from the previous Rs116.26.
