Due to the International Monetary Fund's (IMF) pressure, the government is in a quandary to provide full relief to the people, taking a U-turn late in the night after taking credit for a decrease of Rs15.40 on petrol and Rs7.90 on diesel prices.
The IMF's strict conditions reportedly came in the way of a huge relief reaching the people from the continuous falling oil prices in the global market. The IMF pressure has rendered the government helpless. First, people were emotionally aroused by a big reduction in the prices of petroleum products, then by revising the prices with a minor reduction, the aspirations of the people were spoiled.
The claims of the Prime Minister's Office and the decision of the Ministry of Finance seemed completely contradictory.
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Petrol was eventually reduced by Rs4.74 and diesel by Rs3.86 per litre. Moreover, a tax of Rs82 per litre is also being collected from the public on petroleum products to meet the strict conditions of the IMF. This includes a petroleum levy of Rs60 per litre and customs duty of up to Rs20 per litre. Other charges, including those for oil marketing companies and dealers' margin, were separate.
The PM Office, claiming a reduction in inflation and economic stability, said the prime minister directed the Ministry of Finance to reduce the price of petrol by Rs15.4 and the price of diesel by Rs7.90, but late at night, petrol was reduced by only Rs4.74 and diesel by Rs3.86. As per a notification issued, the new price of petrol is Rs268.86 and high-speed diesel is Rs270.22 per litre.
Also Read: PM directs to reduce prices of petroleum products
It should be noted that the global price of crude oil has come down to $81 per barrel, and the government could have given a big relief to the people had the strict IMF conditions not become a hurdle.
Currently, the rate of GST on petroleum is zero, but the proposal to impose an 18% GST or carbon levy on petroleum in the next financial year is also under consideration. Not only that, but the target of the petroleum levy for the current financial year is Rs869 billion, which will increase to Rs1,080 billion next year on the demand of the IMF.
