Petrol prices set according to international markets: Government
On Wednesday, the Sindh High Court heard a petition against the state on the price hike in petroleum products.
According to details, Maulvi Iqbal Haider, Petitioner Advocate had argued at the price hike is a violation of the Constitution and the prices cannot be increased with Parliament’s approval.
In its defense, the Federal Government submitted a written response in court. It said, the prices of petroleum products are determined according to international market’s petrol prices.
“To determine the price of any petrol product, it is very important to consider the prices of imported oil,” said the report. “During months when oil is not imported, the prices are set in accordance to the local market.”
In March 2019, the Oil and Gas Regulatory Authority had requested an increase in the oil prices by Rs 11. The price of diesel was requested to go up by RSs 6. In its reply, the government remarked that the oil’s price in Pakistan is the lowest in the region.
Currently, the tax levied on the price of petrol is Rs 30 and on diesel in Rs 17. According to needs, subsidies are given for Kerosene oil, the government added.
The court has ordered the petitioner to submit a response by December 18.