Pakistan has lowest fuel prices in region: Shahid Khaqan

ISLAMABAD: Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi Wednesday categorically said that the government did not earn a single additional penny on account of price reduction in petroleum products at international level.

He said Pakistan’s petroleum products prices were still the lowest as compared to other countries of the world.

He was concluding a two-day debate in the National Assembly on the motions for not passing on benefits to people and further burdening gas consumers on levy of Rs 101 billion in the country.

The minister said that the government has passed on benefit of Rs.41 per liter to people so far on account of reduction in petroleum prices in the international markets.

He said there was a clear directive of the Prime Minister to pass on the benefit to masses.

Giving the comparison of petrol prices with other countries of the region, the minister said currently the prices of petrol in India is Rs. 100 per liter and Rs 130 per liter in Bangladesh while in Pakistan its prices are Rs.71.25 per liter.

He said international oil markets did witness a significant reduction in the prices of petroleum products from $ 120 per barrel to $ 35 per barrel since February 2014. The government had been charging Rs. 25.78 tax on petroleum products when its prices were $ 120 per barrel and now almost same Rs. 25.59 tax was being charged in the country.

He said all developed and European counties earned major chunk of their income from taxation on petroleum products.

He said the government has adopted a prudent policy in this regard and its prices were lowest as compared to other importing countries.

The minister refuted the Opposition parties’ allegation that the government was going to overburden gas consumers with additional Rs 101 billion Gas Infrastructure Development Cess (CIDC).

He made it clear that the cost of gas pipeline would have to be borne by those who would utilize LNG and added that from this cushion the government would lay gas pipelines and made terminals.

He said that unfortunately no new pipeline was laid by any past government adding that power plants, fertilizers industries and CNG sector, running on gas, had been closed.

The energy crisis could not be overcome without the availability of additional gas and addressing gas-related issues, he added.