Govt to slash edible oil price by Rs45-50 per litre, says Asad Umar

ISLAMABAD: Minister for Planning and Development Asad Umar on Monday said that the government had decided in principle to reduce the edible oil price by Rs45 to 50 per litre.

“This will be achieved by reducing taxes on the edible oil. Sales tax on edible oil will be cut from 17 per cent to 8.50 per cent, customs duty per tonne to be halved, and additional customs duty will be abolished altogether,” said the minister while addressing a news conference in the capital.

The government had also substantially slashed taxes on petroleum products to pass on a minimum impact of their price hike in the world market, he added.

He said that crude oil prices witnessed an increase of 81.55 per cent over the last 12 months in the global market, while the prices were enhanced by 17.55 per cent only in Pakistan.

Regarding petrol price, Umar said, the government had reduced GST from 17 per cent to 6.8 per cent and the Petroleum Development Levy from Rs30 to Rs5.62 per litre.

“Sales tax on diesel has been reduced from 17 per cent to 10.03 per cent and the petroleum development levy from Rs30 to Rs5.14 per litre.”

According to Umar, a programme had been prepared to extend targeted subsidies on essential commodities to the marginalised segments of the society.

“Prime Minister Imran Khan will share details of the programme in the next few days whilst the benefit of the programme would start reaching the people by the end of November,” said Umar.

Relaying that the coronavirus pandemic had adversely affected the global market, he compared different products to other countries which were not made expensive locally.

The minister said most of the commodities were more expensive in India, including petrol, in comparison with Pakistan. “There was a minor difference between prices of chicken eggs in India and Pakistan.”

He said the shrinking of the world economies had affected the supply of products.

“The world market witnessed a 48 per cent rise on edible oil price, but Pakistan jacked it up by 38 per cent,” he said, adding that sugar prices rose by 53 per cent at the international level, whereas they boosted by 15 per cent in Pakistan.

At the international level, urea price enhanced by 66 per cent and in Pakistan, its price increased by 28 per cent, he maintained.

Umar admitted that there was inflation in the country. However, he added, it was one such thing that was being discussed all over the world.