The price of petrol has increased to Rs145.82 per litre after the latest spike of Rs8.03. The government of Pakistan has made a cumulative increase in petrol price of Rs35.13 per litre since July 2021.
The Oil and Gas Regulatory Authority (OGRA) on Friday made an announcement regarding the new increase in prices of petroleum products throughout the country with immediate effect. Owing to the increase, petrol is now available at Rs145.82 per litre.
Similarly, high-speed diesel (HSD) also saw an increase of Rs30.7 in its price, while the price of kerosene oil has been raised by Rs34.64 during the last 4 months of the ongoing fiscal year.
According to the notification, HSD— the most widely consumed fuel in Pakistan— will now be sold at Rs142.62 per litre following an increase of Rs8.14 per litre.
Kerosene oil is now available at Rs116.53 per litre following the recent increase of Rs6.27 per litre. Light diesel oil (LDO) is currently sold at Rs114.07 after an increase of Rs 5.72 per litre.
As per the statement issued by the finance ministry, the government has decided to absorb a significant portion of the price instead of passing it onto the consumers.
The notification states, “On November 1, 2021, the Prime Minister had not agreed with the proposals worked out by OGRA and the finance division and directed to maintain the prices as notified on October 16, 2021”.
The notification added that keeping the October 16, 2021 petroleum prices was not possible due to some concerns including cash flow issues owing to the short recovery of the cost.
The Ministry of Finance said, “It is important to note that in the previous petroleum prices, a significant relief was already provided to the consumers. The government is cognizant of its responsibility to provide maximum relief to the consumers. This has dented the petroleum levy budget of Rs152.5 billion during July-September 2021 as compared to Rs20 billion realized only. Foregoing in view, the prices of petroleum have been increased partially as compared to the prices being worked out by OGRA.”
The statement stressed that if OGRA’s recommendations has been accepted by the government, the new prices would have been even higher.
