ISLAMABAD: Officials in the Ministry of Petroleum and Natural Resources have revealed that petroleum product prices in the country could increase by up to 19.9 per cent in July due to a rise in global crude oil prices.
The ministry received a summary from the Oil and Gas Regulatory Authority (Ogra) on Wednesday that recommended an upward revision in oil prices as international crude rates increased.
Prices of all petroleum products, except for kerosene oil, are deregulated and Ogra only monitors their prices. The government has the capability to absorb the impact of proposed increase in oil prices by adjusting tax rates on petroleum products.
Despite a decline of over 50% in global prices, consumers have largely been denied a full relief in previous months due to hefty taxes to avoid revenue loss to the government. At present, two types of taxes are being charged from the oil consumers, including petroleum levy and general sales tax.
