Businessmen demand cut in oil prices by Rs15


ISLAMABAD: The business community of Islamabad has demanded Rs10 to Rs15 per litre reduction in the petroleum prices.

“The government should pass on cut in international oil prices to the consumers,” said Atif Ikram Sheikh, the Islamabad Chamber of Commerce and Industry president while addressing the members of the chamber here on Tuesday.

He expressed his resentment over minor cut in the oil prices.

The ICCI president said the diesel was the largest selling fuel in the country, running heavy vehicles, generators and water pumps, etc. while the government will now be receiving Rs38 per litre on diesel in terms of taxes and levies.

“Reduction in oil prices will boost the economy as it will reduce production and transportation cost, bring down inflation, improve purchasing power of the consumers,” Mr Atif Sheikh said, adding, “The price of crude oil in international market has come down to below $35 per barrel showing a fall of over 60pc in the past few months, but the reduction in Pakistan has not been at the same ratio,” he added.

The meeting was attended by senior office bearers of the ICCI and prominent members of the business community.

The ICCI members noted that the world was witnessing a historic fall in oil prices, which has created an excellent rebuilding opportunity for the oil importing countries including Pakistan.

However, the government instead of providing relief to the citizens and the business community has levied huge taxes on petroleum products.

“By sharing full benefit with the consumers the government can obtain higher revenues in the shape of taxes from other avenues. Low fuel prices will help reduce inflation too,” the ICCI president said.

They also criticised fixed sales tax on POL products and said this mode would badly hurt business and industrial activities and put unnecessary pressure on the people, especially in a scenario of falling petroleum prices in the international market.

The government has fixed sales tax of Rs14.58 per litre on petrol, Rs29.57 on high speed diesel, Rs10.40 on kerosene and Rs9.63 per litre on light diesel oil. Earlier these taxes were charged on percentage basis.