ISLAMABAD: Despite a hike in the global market, the government has decided to keep oil prices unchanged for October 2016.
The decision was taken at a time when Imran Khan-led Pakistan Tehreek-e-Insaf (PTI) launched a march towards Raiwind, near the family residence of Prime Minister Nawaz Sharif in Lahore.
Owing to the static petroleum product prices, the government will bear a revenue loss of Rs2 billion in October.
Earlier, in line with the rise in global crude prices, the Oil and Gas Regulatory Authority (Ogra) had prepared a summary, recommending an increase of up to 6.3% in prices of petroleum products, except for high-speed diesel, for October 2016.
Prices of all petroleum products, except for kerosene oil, are deregulated and Ogra only monitors their movement. The government has the capability to absorb the impact of proposed increase in oil prices by adjusting the rates of taxes on petroleum products.
Despite a decline of over 50% in global prices over the past two years, consumers have largely been denied a full relief in previous months because of hefty taxes to avoid revenue loss to the government.
