KARACHI: Former finance minister Miftah Ismail has stated that the cost of one liter of petrol amounts to approximately Rs. 220 once it reaches Karachi Port through duties, revealing that the rest of the price of the fuel comprises taxes, company profit, and many other elements.
While addressing an interview session, Miftah asserted that the government still protects the profit margins of oil marketing companies, leaving the citizens with heavy taxes.
“Petrol arrives at Karachi Port at about Rs. 220 per liter after import duties. The rest of everything added is made of taxes and company profits,” he said.
He alleged that no government is willing to reduce the profit margins of petroleum companies, saying “we always stand with the companies.”
Miftah further accused the government of its stance regarding taxation of the fuel, saying that any offer to reduce the price of petrol by Rs. 10 per liter for motorcycle owners is rejected on the pretext of IMF commitment.
According to him, almost 60 percent of the petrol users are motorcycle drivers, who are paying Rs. 120 per liter in taxes and levies, increasing the cost of travel and leading to an increase in the price level of the country.
“If the government imposes a tax of 45 percent on the fuel consumed by lower classes of society, prices of the commodities and services will necessarily increase,” he said.
The ex-finance minister of Pakistan also criticized the policies being adopted by the present government regarding the fuel pricing system, asserting that the petroleum prices could have been deregulated in just a few days if they were sincere about it.
“They said that deregulation is needed, but actually there has not been any change in it. The prices used to be revised every week earlier, but now they are being revised daily,” he said.
Moreover, Miftah accused the government of not following the fiscal discipline policy since it used to preach about it, and it even exceeded Rs. 50 billion in the federal budget last year.
