He said the OGRA had recommended cut in the prices of almost all petroleum products due to falling oil prices in the international market which was not fully passed on to the public and industry.
He said it was recommended by the OGRA to reduce the price of High Speed Diesel (HSD) by Rs 4.68 and kerosene oil by Rs 1.92 per liter but the government did not provide relief according to the recommendations. The reduction could be much bigger in case the entire impact of lower international prices would have been passed on to the consumers, he said.
Since Jan 2019, the petroleum levy on HSD has been increased by Rs 10 per liter (almost 125 percent) to Rs 18 from Rs 8 per liter while it was lifted to Rs 14 on petrol from earlier level of Rs 10 per liter, he maintained.
The government instead of providing full relief to the consumers increased GST and petroleum levy on petrol and HSD. High speed diesel is being used in agriculture while LDO is used in the industry.
The APBF chief asked the government to take measures for reduction of production cost in consultation with the stakeholders for sustainable economic growth. He said regulatory duties on all raw materials should also be eliminated to reduce the cost of doing business and making manufacturing sector competitive.