LAHORE - The All Pakistan Bus Owners Association on Thursday increased fare of inter-city air-conditioned buses by five percent.

Transport owners say the fare has been increased keeping in view the recent increase in prices of petroleum products.

It is pertinent to mention here that no increase in fare of non-air-conditioned buses operated from Badami Bagh Bus Terminal, Jinnah Bus Terminal and City District Bus Terminal has been proposed. The Lahore Transport Company however is not going to increase fare on intra-city bus routes.

All Pakistan Bus Owners Association Chairman Azam Khan Niazi says transporters did not want to increase fare, but they were forced to do so due to government’s poor policies. He said the Punjab Transport Department had not yet contacted transport owners after they decided to raise the fare.

The Oil and Gas Regulatory Authority (Ogra) and the Ministry of Petroleum had increased prices of various petroleum products by four to 20 percent a few days ago – petrol price was increased by Rs2.98 per litre and diesel by Rs10.25 per litre. Now petrol price is Rs84.51 per litre.  The government, however, decided to reduce the impact on the consumers through adjustment in the applicable levies, said the notification.  Against the standard rate of 17 per cent general sales tax (GST), currently the government is charging 31 per cent GST on high speed diesel (HSD) and 17 per cent on other petroleum products including petrol, kerosene oil and LDO.

In addition to the GST, the government was charging highest rates of Petroleum Development Levy (PDL) from the consumers. Currently, the consumers are paying Rs10 per litre petroleum development levy on petrol, Rs8 on HSD, Rs6 per litre on kerosene oil and Rs3 per litre on the LDO.

Meanwhile, spokesperson of the prime minister has issued clarification relating to increase in the petroleum prices. He said the price for petrol has been increased by Rs2.98 per litre. The price of high speed diesel oil has been increased by Rs5.92 per litre as against the proposal of increase by Rs10.25 per litre.