Pakistan’s financial troubles seem to be far from over. The government of Pakistan has again hiked the prices of several petroleum products by another Rs 30. Not just this, the prices of electricity have also been raised by Rs 7.9 per unit. This comes as Chinese banks seems to have agreed to refinance Pakistan with $2.3 billion. The funds are expected to shore up foreign exchange reserves of Pakistan.&nbsp;After the hike in fuel prices, petrol will now cost Rs 209.86 per litre, diesel has reached Rs 204.15 per litre and kerosene oil is sold at Rs 181.94 per litre. On Thursday, Finance Minister Miftah Ismail announced the hike in a press conference in Islamabad. The new prices will come into effect from midnight, the minister said. The government had made a similar raise a week ago. &nbsp;&nbsp;

"The government is still facing a loss of around Rs 9 in petrol despite a hike of Rs 30 as we are not collecting any tax on the fuel," the minister added. &nbsp;

Also Read:&nbsp;<a href="https://www.wionews.com/south-asia/pak-will-break-into-pieces-ex-pm-khan-warns-of-civil-war-if-polls-not-announced-484372" hreflang="en">Pak could split into 3 parts &amp; also lose nuclear deterrent capabilities: Khan</a>

For next fiscal year 2022-23, Pakistan’s National Electric Power Regulatory Authority (NEPRA) has increased the basic power tariff by Rs 7.9078 per kWh. The basic power tariff currently in Pakistan is Rs 16.91 per unit. Now, it will be over Rs 24 per unit. &nbsp;

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The government will look to ensure stability in prices of sugar and wheat at Rs 70 per kg and Rs 40 per kg, respectively at stores in country, Ismail said.&nbsp;"Irrespective of what the IMF says, the government cannot sell petrol and diesel at a loss," he said. &nbsp;&nbsp;

(With inputs from agencies)&nbsp;

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Pakistan’s financial troubles seem to be far from over. The government of Pakistan has again hiked the prices of several petroleum products by another Rs 30. Not just this, the prices of electricity have also been raised by Rs 7.

Pakistan’s financial troubles seem to be far from over. The government of Pakistan has again hiked the prices of several petroleum products by another Rs 30. Not just this, the prices of electricity have also been raised by Rs 7.9 per unit. This comes as Chinese banks seems to have agreed to refinance Pakistan with $2.3 billion. The funds are expected to shore up foreign exchange reserves of Pakistan. After the hike in fuel prices, petrol will now cost Rs 209.86 per litre, diesel has reached Rs 204.15 per litre and kerosene oil is sold at Rs 181.94 per litre. On Thursday, Finance Minister Miftah Ismail announced the hike in a press conference in Islamabad. The new prices will come into effect from midnight, the minister said. The government had made a similar raise a week ago. "The government is still facing a loss of around Rs 9 in petrol despite a hike of Rs 30 as we are not collecting any tax on the fuel," the minister added. Also Read: Pak could split into 3 parts & also lose nuclear deterrent capabilities: Khan For next fiscal year 2022-23, Pakistan’s National Electric Power Regulatory Authority (NEPRA) has increased the basic power tariff by Rs 7.9078 per kWh. The basic power tariff currently in Pakistan is Rs 16.91 per unit. Now, it will be over Rs 24 per unit. WATCH WION LIVE HERE The government will look to ensure stability in prices of sugar and wheat at Rs 70 per kg and Rs 40 per kg, respectively at stores in country, Ismail said. "Irrespective of what the IMF says, the government cannot sell petrol and diesel at a loss," he said. (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. ×

Pak hikes prices of petroleum products, power massively as Chinese banks agree to refinance with $2.3 bn

The Congress-led UDF in Kerala on Sunday attacked the Centre and said that frequent hike in prices of petroleum products was because the BJP-led government at the Centre was allegedly colluding with oil companies to 'help' them make 'unfair' profits.

The price of petrol and diesel had reached a record high in the country, PTI quoted Congress leader Ramesh Chennithala as saying.&nbsp

The price of petrol in the state capital was Rs 80 per litre and diesel Rs 73 per litre, he added.

The Leader of the Opposition in the assembly criticised the CPI(M)-led LDF government in the state, saying it was not doing anything to alleviate the sufferings of the people due to the frequent hike in the prices of fuel.

When the UDF was in power, it kept a check on the price of petroleum products by doing away with the additional tax, he added.&nbsp

The Leader of the Opposition in the assembly criticised the CPI(M)-led LDF government in the state, saying it was not doing anything to alleviate the sufferings of the people due to the frequent hike in the prices of fuel.

The Congress-led UDF in Kerala on Sunday attacked the Centre and said that frequent hike in prices of petroleum products was because the BJP-led government at the Centre was allegedly colluding with oil companies to 'help' them make 'unfair' profits. The price of petrol and diesel had reached a record high in the country, PTI quoted Congress leader Ramesh Chennithala as saying. The price of petrol in the state capital was Rs 80 per litre and diesel Rs 73 per litre, he added. The Leader of the Opposition in the assembly criticised the CPI(M)-led LDF government in the state, saying it was not doing anything to alleviate the sufferings of the people due to the frequent hike in the prices of fuel. When the UDF was in power, it kept a check on the price of petroleum products by doing away with the additional tax, he added.

Centre colluding with oil companies to 'help' them make 'unfair' profits: UDF

On the first day of the financial year 2018-19, the retail prices of petrol and diesel were revised upwards. Now in Delhi, diesel price is at all-time high and petrol price is highest in the past four years. The global rise of crude oil price, which is now touching US $70 a barrel, is the reason for this steep increase.

This is overall painful for the society as petrol/diesel touches everybody's life. Demands are pouring in from different quarters for government to chip in to give some reprieve by way of reducing taxes or by capping the prices itself.

However, the fact of the matter is that this petroleum is India's perennial weakness, and as a society, we have no option but to live with it.

First, let's have a look at this sector.

Till the decade of the 90s, the oil sector was completely controlled by Government of India (GOI). Oil PSUs only acted as marketer. However, the 1991 liberalisation of Indian economy allowed private players to enter the oil sector and the process of price decontrol started as well. In 2002, GOI made the majority of petroleum products free from the APM (Administered Price Mechanism).

In 2003-04, private oil companies started marketing of petroleum products and barring products like LPG and kerosene, pricing of all other products started depending on market forces. GOI was only controlling products like LPG and kerosene through PSUs.

Trouble started when prices of crude oil started soaring steeply during mid of past decade (it even touched US $130-140 a barrel mark in 2008-09). At that point of time, had the Centre allowed market forces to decide the rate of petrol and diesel in sync with rising crude price, the whole economy and life of common citizen would have gone haywire and thus GOI again started controlling prices of petrol/diesel through PSUs. Private players could not take the brunt as in no case they were in the position to sell the products on par with PSUs, so they took a backseat.

Due to price cap by GOI, the PSUs suffered huge losses (under-recoveries) which were partially compensated by GOI and upstream oil companies (ONGC), but it was not at all adequate to cover the losses. Downstream oil companies started reeling.

Here let's look at few figures before we move forward. During 2016, India consumed around 210 MMT (million metric tonnes) of crude oil against a production of a meagre 40 MMT. Thus, around 81 per cent of the required petrol product had to be imported. Therefore, it is clear that in case of rising crude price, the inflated crude cost will go out of Indian economy for 80 per cent of the crude consumed. The worrisome fact is that demand is increasing manifold than the production. In 2006, consumption was just 121 MMT against the production of 35 MMT. As clear over past one-decade consumption has gone up with a growth rate of 4.9 per cent whereas same for production has been just 1.9 per cent. Since the economy is thriving and no major new oil discovery on the cards, this trend would definitely continue for the time to follow.

Selling products at forced lower prices was like postponing problems, which certainly is not the solution. Now when crude prices started plummeting again in 2014, it was a huge blessing for the country like India where petroleum is a scarce commodity. Once the crude price came down to a reasonable level, the GOI (NDA govt.) gave PSUs free hand to fix the price of diesel & petrol. The prices are now adjusted on daily basis.

In fact, when prices nosedived after NDA came in power, GOI took this opportunity to raise taxes to mint some extra money out of it. Nothing wrong with it per se. It was the GOI only who was sharing the most of the burden of under-recoveries when the crude price was high. Moreover, GOI is under pressure to maintain the fiscal deficit within limits.

Critics put up a simple mathematics. Crude price three years ago was double of what it is today then we should be paying half price for petrol and diesel today. But for sure it must be clear by now that it is just not possible.

GOI and PSUs are still sharing the burden of under-recoveries on kerosene and LPG and therefore it is only fair that at least all other products should be sold at on par pricing. The only thing here is that the government, for the time being, should mull over to reduce taxation on these products but there is not much scope of that either.

Let's pay a fair price for products you are buying. As a responsible citizen, our endeavour should be to make sure that we become little miser when it comes to consumption of petroleum products. Cribbing on prices is useless and completely misleading.

(Disclaimer: The opinions expressed above are the personal views of the authors and do not reflect the views of ZMCL)

As a responsible citizen, our endeavour should be to make sure that we become little miser when it comes to consumption of petroleum products.

On the first day of the financial year 2018-19, the retail prices of petrol and diesel were revised upwards. Now in Delhi, diesel price is at all-time high and petrol price is highest in the past four years. The global rise of crude oil price, which is now touching US $70 a barrel, is the reason for this steep increase. This is overall painful for the society as petrol/diesel touches everybody's life. Demands are pouring in from different quarters for government to chip in to give some reprieve by way of reducing taxes or by capping the prices itself. However, the fact of the matter is that this petroleum is India's perennial weakness, and as a society, we have no option but to live with it. First, let's have a look at this sector. Till the decade of the 90s, the oil sector was completely controlled by Government of India (GOI). Oil PSUs only acted as marketer. However, the 1991 liberalisation of Indian economy allowed private players to enter the oil sector and the process of price decontrol started as well. In 2002, GOI made the majority of petroleum products free from the APM (Administered Price Mechanism). In 2003-04, private oil companies started marketing of petroleum products and barring products like LPG and kerosene, pricing of all other products started depending on market forces. GOI was only controlling products like LPG and kerosene through PSUs. Trouble started when prices of crude oil started soaring steeply during mid of past decade (it even touched US $130-140 a barrel mark in 2008-09). At that point of time, had the Centre allowed market forces to decide the rate of petrol and diesel in sync with rising crude price, the whole economy and life of common citizen would have gone haywire and thus GOI again started controlling prices of petrol/diesel through PSUs. Private players could not take the brunt as in no case they were in the position to sell the products on par with PSUs, so they took a backseat. Due to price cap by GOI, the PSUs suffered huge losses (under-recoveries) which were partially compensated by GOI and upstream oil companies (ONGC), but it was not at all adequate to cover the losses. Downstream oil companies started reeling. Here let's look at few figures before we move forward. During 2016, India consumed around 210 MMT (million metric tonnes) of crude oil against a production of a meagre 40 MMT. Thus, around 81 per cent of the required petrol product had to be imported. Therefore, it is clear that in case of rising crude price, the inflated crude cost will go out of Indian economy for 80 per cent of the crude consumed. The worrisome fact is that demand is increasing manifold than the production. In 2006, consumption was just 121 MMT against the production of 35 MMT. As clear over past one-decade consumption has gone up with a growth rate of 4.9 per cent whereas same for production has been just 1.9 per cent. Since the economy is thriving and no major new oil discovery on the cards, this trend would definitely continue for the time to follow. Selling products at forced lower prices was like postponing problems, which certainly is not the solution. Now when crude prices started plummeting again in 2014, it was a huge blessing for the country like India where petroleum is a scarce commodity. Once the crude price came down to a reasonable level, the GOI (NDA govt.) gave PSUs free hand to fix the price of diesel & petrol. The prices are now adjusted on daily basis. In fact, when prices nosedived after NDA came in power, GOI took this opportunity to raise taxes to mint some extra money out of it. Nothing wrong with it per se. It was the GOI only who was sharing the most of the burden of under-recoveries when the crude price was high. Moreover, GOI is under pressure to maintain the fiscal deficit within limits. Critics put up a simple mathematics. Crude price three years ago was double of what it is today then we should be paying half price for petrol and diesel today. But for sure it must be clear by now that it is just not possible. GOI and PSUs are still sharing the burden of under-recoveries on kerosene and LPG and therefore it is only fair that at least all other products should be sold at on par pricing. The only thing here is that the government, for the time being, should mull over to reduce taxation on these products but there is not much scope of that either. Let's pay a fair price for products you are buying. As a responsible citizen, our endeavour should be to make sure that we become little miser when it comes to consumption of petroleum products. Cribbing on prices is useless and completely misleading. (Disclaimer: The opinions expressed above are the personal views of the authors and do not reflect the views of ZMCL)

Opinion: We have to live with rising prices of petrol and diesel

Sparks flew in Rajya Sabha on Tuesday as the ruling BJP and the opposition Congress traded charges over bringing petroleum products under the purview of Goods and Service Tax (GST). &nbsp;&nbsp;

Congress leader and former finance minister P Chidambaram said now that BJP is in power in 19 states, what prevents them from bringing petroleum products under GST.

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Now that BJP is in power in 19 states and at the Centre what prevents them from bringing petroleum products under GST? When will the GST Council take up this subject: P Chidambaram, Congress in Rajya Sabha <a href="https://t.co/xWybbIjTDB">pic.twitter.com/xWybbIjTDB</a>
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&#39;&#39;Now that BJP is in power in 19 states and at the Centre what prevents them from bringing petroleum products under GST? When will the GST Council take up this subject,&#39;&#39; P Chidambaram said in Rajya Sabha.

Responding to Chidambaram, Union Finance Minister Arun Jaitley said that they are in favour of bringing petroleum products under GST.&nbsp;

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We are in favour of bringing petroleum products under GST. We would await consensus of the states and hope states agree to the consensus sooner or later: Union Finance Minister Arun Jaitley in Rajya Sabha <a href="https://t.co/jO4eZILPSq">pic.twitter.com/jO4eZILPSq</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/943019468254359552?ref_src=twsrc%5Etfw">December 19, 2017</a></blockquote>
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&#39;&#39;We are in favour of bringing petroleum products under GST. We would await consensus of the states and hope states agree to the consensus sooner or later,&#39;&#39; said&nbsp;Jaitley.

Since the GST came into effect, bringing petroleum products under the purview of GST has been a contentious issue with Congress accusing BJP led NDA government of dragging its feet on the matter. &nbsp;

Amid an outcry over spiralling fuel prices, state governments, including those ruled by the BJP, are opposing petroleum minister Dharmendra Pradhan&rsquo;s suggestion that petroleum products should be brought under the Goods and Service Tax (GST).

States say the move would adversely impact their revenue, which has increased by almost 50 per cent&nbsp;for most states in the past three years on account of high value-added (VAT) tax.

Consumers pay more than 100 per cent&nbsp;tax &ndash;central and state levies combined -- on petrol and diesel which actually cost Rs 29.53 and Rs 29.12 after refining.

The Centre levies excise duty of Rs 21.14 on petrol and Rs 17.33 on diesel and the states impose value-added tax that ranges between 20-47 per cent.&nbsp;

Sparks flew in Rajya Sabha on Tuesday as the ruling BJP and the opposition Congress traded charges over not brining petroleum products under the purview of Goods and Service Tax (GST). Congress leader and former finance minister P Chidambaram said that not that BJP is in powe in 19 states, what

Sparks flew in Rajya Sabha on Tuesday as the ruling BJP and the opposition Congress traded charges over bringing petroleum products under the purview of Goods and Service Tax (GST). Congress leader and former finance minister P Chidambaram said now that BJP is in power in 19 states, what prevents them from bringing petroleum products under GST. Now that BJP is in power in 19 states and at the Centre what prevents them from bringing petroleum products under GST? When will the GST Council take up this subject: P Chidambaram, Congress in Rajya Sabha pic.twitter.com/xWybbIjTDB — ANI (@ANI) December 19, 2017 × ''Now that BJP is in power in 19 states and at the Centre what prevents them from bringing petroleum products under GST? When will the GST Council take up this subject,'' P Chidambaram said in Rajya Sabha. Responding to Chidambaram, Union Finance Minister Arun Jaitley said that they are in favour of bringing petroleum products under GST. We are in favour of bringing petroleum products under GST. We would await consensus of the states and hope states agree to the consensus sooner or later: Union Finance Minister Arun Jaitley in Rajya Sabha pic.twitter.com/jO4eZILPSq — ANI (@ANI) December 19, 2017 × ''We are in favour of bringing petroleum products under GST. We would await consensus of the states and hope states agree to the consensus sooner or later,'' said Jaitley. Since the GST came into effect, bringing petroleum products under the purview of GST has been a contentious issue with Congress accusing BJP led NDA government of dragging its feet on the matter. Amid an outcry over spiralling fuel prices, state governments, including those ruled by the BJP, are opposing petroleum minister Dharmendra Pradhan’s suggestion that petroleum products should be brought under the Goods and Service Tax (GST). States say the move would adversely impact their revenue, which has increased by almost 50 per cent for most states in the past three years on account of high value-added (VAT) tax. Consumers pay more than 100 per cent tax –central and state levies combined -- on petrol and diesel which actually cost Rs 29.53 and Rs 29.12 after refining. The Centre levies excise duty of Rs 21.14 on petrol and Rs 17.33 on diesel and the states impose value-added tax that ranges between 20-47 per cent.

Chidambaram questions Jaitley's push to bring petroleum products under GST

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