Pakistan in Media

Opinionated Media Coverage

Government pocketing 24 to 30 per cent of oil prices

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Dawn, Pakistan, Tuesday, 21 Jul, 2009
THE pain being felt by people at the pump has a lot to do with the existing taxation on petroleum products. The oil-pricing formula made public on Sunday reveals that the government is pocketing 24 to 30 per cent of the price of each litre of kerosene oil, diesel and petrol. The cumulative taxes on petrol come to 50 per cent of its ex-refinery price, 39.49 per cent of the price of diesel and 36 per cent of the price of kerosene oil. As if this were not enough, refineries, oil-marketing companies and pump owners too are making windfall profits. According to the Rana Bhagwandas Judicial Commission report on oil pricing the government, refineries and OMCs have raked in billions of rupees since the adoption of market-determined oil prices almost a decade ago. It says the government revenues from the oil sector crossed Rs1tr between 2001 and 2008. The net profits of oil refineries and OMCs also recorded an unprecedented jump during this period, one more indication of how governments here protect the interests of big corporations.
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posted @ 12:36 AM,

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