The Federal Board of Revenue (FBR) has announced a significant surge in sales tax on Compressed Natural Gas (CNG), the 24NewsHD TV channel reported.

According to a notification, the FBR has set the rate per kilogramme of CNG at Rs200 for Region-I and Rs200 for Region- II from the previous rates of Rs140 and Rs135 per kilogramme respectively.

Region-I comprises KP, Balochistan and the Potohar region (Rawalpindi, Islamabad, and Gujar Khan) and Region–II Sindh and Punjab.

The move comes days after the government increased prices of petroleum products and electricity tariffs twice a month.

The move comes a couple of days after the government increased prices of petroleum products and electricity tariffs twice in the last month.

On Monday, the federal government increased the prices of petroleum products. According to the Finance Division notification, the new petrol price is Rs293.94 per litre and HSD Rs282.24 per litre.

This is the second surge in the oil rates in the ongoing month.  Hiking fuel prices have been adding to public problems. The government charges Rs60 per litre petroleum development levy (PDL) on petrol and HSD each.

The government reviews fuel prices every 15 days and adjusts them based on the movements of global oil prices and the exchange rate of the local currency.

Petrol is mostly used in private transport, small vehicles, rickshaws, and two-wheelers and has a direct bearing on the budgets of the middle and lower-middle classes.

Most of the transport sector runs on HSD. Its price is considered inflationary as it is mostly used in heavy transport vehicles, trains and agricultural engines like trucks, buses, tractors, tube wells and threshers and particularly adds to the prices of vegetables and other eatables.