ICCI for passing on oil prices reduction to masses

ISLAMABAD: The Islamabad Chamber of Commerce and Industry has urged the government for pass on the full benefit of reduced oil prices to the people.

They said that the price of crude oil in international market has witnessed around 29 percent reduction from September 2018 to September 2019.

Ahmed Hassan Moughal, President, Islamabad Chamber of Commerce and Industry, said that crude oil price in September 2018 was $78 per barrel that has come down to below $55 per barrel showing a reduction of around 29 percent.

Therefore, he urged the government for reducing POL prices in proportion to the fall of crude oil price in the international market to pass on full benefit of reduced prices to the people.

Ahmed Hassan Moughal said that government petroleum products was an important source of tax revenue collection.

The government, he said that was currently receiving 17 percent GST on all POL products besides charging petroleum levy of Rs14 per litre on petrol, Rs18 per litre on HSD, Rs3 per litre on kerosene and Rs6 per litre on LDO.

He urged the government for making significant cut in taxes on POL products that would provide good relief to the business sector and the general public.

Rafat Farid Senior Vice President and Iftikhar Anwar Sethi Vice President said that petrol was a key input for many industries while diesel was key input for transport and agriculture sectors.

They said that further reduction in petroleum products would directly bring down the cost of doing business and reduce inflation for people.

They said that hike in POL products, gas and electricity tariffs has eroded Pakistan's competitiveness in international market due to which the country was losing exports, investment and economic growth.

This approach has also significantly squeezed the purchasing power of the common man due to which business activities were suffering.

They urged that government for passing on the full benefit of reduced oil prices to people that would reduce production cost, decrease inflation and help in improving trade and industrial activities.