Govt cuts petrol, diesel prices by Rs5 in pakistan 2021

Govt cuts petrol, diesel prices by Rs5 in pakistan

 Govt cuts petrol, diesel prices by Rs5 in Pakistan's government has announced a reduction in the price of petrol and diesel by Rs5. The cuts are expected to benefit nearly 30 million Pakistanis and help reduce their reliance on costly dollar-denominated fuels.

Govt cuts petrol, diesel prices by Rs5 in pakistan 2021

The decision was taken in a meeting of the Economic Coordination Committee (ECC) of the Cabinet chaired by Prime Minister Nawaz Sharif.

According to details, petrol will be sold in the country at Rs95 per litre from tomorrow instead of current Rs100 per litre. The government has also directed oil marketing companies to absorb Re1 per litre hike in petrol prices that came into effect on October 1.

Similarly, diesel will be sold at Rs91 per litre instead of current Rs96 per litre with effect from tomorrow. And oil marketing companies have been asked to absorb Re1-per-lire increase in diesel prices that came into effect on October 1.


The government has increased General Sales Tax (GST) on petrol by Rs4.07 per litre from Rs2.34 per litre (1.63%) to Rs6.41 (4.77%). This increase in the GST will lead to a reduction in petrol price by about 1%. I will like to give my views on this government decision in this article.

Before, the January 1st 2012 referendum where the people of Malaysia voted no (in the affirmative) for GST, I became very concerned and had started to look into what was going to happen should the people of Malaysia decide to vote yes for GST. 

In that very early stage when there was only a little information available regarding GST and what it will do, I became worried that under GST, my countrymen would be burdened with higher cost of living.

 The main reason for my concern is because GST is a tax that is charged on all goods and services indiscriminately regardless if it is essential or non-essential. After the people of Malaysia voted no for GST, 

I expected that the government would scrap it altogether. But instead, they decided to keep it but to reduce its implementation in stages.

I strongly feel that while implementing GST on all goods and services, including petrol (and diesel), is a great idea to increase the government's revenue, what is utterly not acceptable is any tax increases on essentials. 

Based on my observation of the world today, essential goods include food and water for human consumption as well as things like petroleum which are usually necessary for transportation. 

Using this rationale, I strongly feel that any taxes charged on items like petrol should be zero percentage point or below zero percentage point tax rates. Any tax increase on goods like petrol makes life harder and more expensive for the ordinary citizens and through this, resulting in increased cost of living as well as making it harder for people to earn a living.

It is very understandable that the government needs more money to run their operations. I fully support increasing government revenue. But at the same time, it is also essential that the government should ensure that any tax increases are kept at zero percent or below zero percentage point on goods like food and necessities, including petrol and diesel. 

I feel strongly about this because Malaysia is an agricultural based country where many of our people live in villages far from towns and cities with little or no means of transportation.

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