Government Increases Carbon Tax on Petrol and Diesel by Rs. 5

ISLAMABAD: The government has increased carbon tax on petrol and diesel by Rs five, ARY News reported.

The rate of carbon tax on petrol and diesel will be applicable from today at 12 am.

As per the notification, the government has increased the carbon tax from Rs 2.5 to Rs 5. While the government has balanced the rise in the carbon tax by slashing the petroleum levy.

According to the notification, the carbon tax is also imposed on High Octane and Furnace oil by Rs 5. The real effect of the carbon tax increase will surface on the next announcement of petrol and diesel prices.

Earlier, on June 26, the government decided to maintain the existing prices of petroleum products.

According to a notification issued by the Petroleum Division, the current prices will remain unchanged till further notice.

As per the notification, the price of petrol will be maintained at Rs 299.50 per litre. Similarly, the price of high-speed diesel will remain at Rs 311.47 per litre till further notice.

Last Friday, Prime Minister Shehbaz Sharif announced major relief for the public with a big cut in petrol price and diesel rate.

In an important statement on oil prices after regional and global peace was established through Pakistan’s mediation, the PM announced a reduction of Rs74 per litre in petrol price and Rs67 per litre in diesel rate.

With the cut, petrol price will come down from Rs373 to Rs299 per litre, the PM said. The diesel price will drop from Rs 378 to Rs 311 per litre.

Citing improvement in the economic situation, the PM said the benefit of lower oil prices is being passed on to the people. “The promise we made to the nation, Alhamdulillah, we are going to fulfill that,” Shehbaz Sharif said.

He said he understands the difficulties of the public, who showed exemplary patience and tolerance during the tough situation. “We are deeply grateful to the people for supporting the government in difficult times,” the PM said.

From the start of the crisis, the government tried to cut petrol prices from its own resources as much as possible, he said. The federal government used Rs129 billion saved through the development budget and austerity measures, the PM added.

The government gave maximum possible relief to people across the country against huge increases in petrol prices, he said. While some countries resorted to measures like fuel rationing amid the regional economic situation, Pakistan avoided an energy crisis due to better planning, Shehbaz Sharif said. “Due to effective measures, there were no queues, no long lines, nor did the public face any shortage of petrol,” the PM said.

He said the federation and provinces fully cooperated to keep the national economy stable and thanked the chief ministers for their support. The government took steps to shield the public from global inflation as much as possible, and any reduction in oil prices in the international market will be passed on to the people in full, he said.

The PM said effective steps will continue to maintain economic stability and reduce inflation further. During the entire crisis, austerity was adopted at the government level and subsidies were also provided to deprived segments as relief, Shehbaz Sharif said. “Providing maximum relief to the people is the government’s top priority,” he said.

He added that with Allah’s grace, peace became possible in the tense situation in the Middle East due to Pakistan’s mediation.