Petrol price can be reduced by Rs 16 per litre
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Oil importing nations to get benefit worth 1.4 trillion
The Pakistan Economy Watch (PEW) on Friday said prices of all petroleum products can be reduced while keeping government’s margin intact.
The price of petrol can be reduced by Rs 16 which will give benefit to masses and industry to reduce inflation drastically, said Dr. Murtaza Mughal, President PEW.
He said that if country buy a barrel for dollar 67 and add $ 2freight premium, 9 per cent handling, bank, LC charges, marine Insurance, 3.8 percent wharfage charges, 3.5 percent oil companies margin and 10 per cent refining cost, the prices will be Rs 56.53.
Dr. Murtaza Mughal said that adding 17 percent GST and 3.15 per cent Excise duty jacks up the cost to 67.93 while petrol is being sold at over Rs 84 per little in Pakistan.
He said that government is also collecting levy imposed through a SRO surpassing the Parliament which must be abolished to benefit the economy and masses.
Adding levy to price of petrol which is currently Rs 10 per litre make per litre price to Rs 77.93 which means that masses are still paying additional seven rupees for every litre they buy.
Dr. Murtaza Mughal said that 40 percent reduction in international oil prices will transfer 1.3 trillion dollars from oil exporters to oil importing countries hitting inflation hard.
Inflation is coming down across the world allowing central bankers to soften monetary policies.
