Govt increases price of petrol by Rs 5.40 per liter

Islamabad: The government has Thursday hiked the price of petrol by Rs 5.40 per liter for the 2nd fortnightly of July.

The government has increased the prices of almost all petroleum products and jacked up High-Speed Diesel by Rs 2.54 per liter, Kerosene Oil (SKO) by Rs 1.39 per liter, and Light Diesel Oil by Rs 1.27 per liter.

Although the international oil prices have been on rising, the Government took the decision not to pass on the entire burden of the increase to the consumers, the statement issued by Finance Division said.

The rates of sales tax and petroleum levy have been adjusted in a manner that maximum relief is provided to the consumers, said finance division, the statement added.

The Government has been providing maximum relief to the consumers by reducing the prices of petroleum products since April 2021, the finance division maintained.

It is pertinent to mention that OGRA had recommended a Rs.11.50/liter increase in the price of MS Petrol, the Prime Minister however considering providing maximum relief to the public has allowed only Rs. 5.40/liter (absorbing Rs.6.10/liter) increase, the statement added.

After the increase of Rs 5.40 per liter, the price of petrol will go up from the existing Rs 112.69 per liter to Rs 118.09 per liter. After the hike, High-Speed Diesel will be going up from the current Rs 113.99 per liter to Rs 116.53 per liter. The price of Kerosene will go up from Rs 85.75 per liter to Rs 87.14 per liter and LDO will go up from the existing Rs 83.40 per liter to Rs 84.67 per liter.

For the first fortnightly of July also the government had increased the prices of petrol by Rs 2 per liter and High-Speed Diesel by Rs 1.44 per liter. The government had also increased the prices of Kerosene Oil by Rs 3.86 per liter and Light Diesel Oil by Rs 3.72 per liter. The new prices will be effective from July 16th till August 1st.

Earlier, the government had decided to keep oil prices unchanged in Pakistan effective from June 1, 2021.

The Prime Minister has decided to maintain the prices of petroleum products as they were on May 17th, 2021. The government has not increased the prices of petroleum products since 16th April 2021 by adjusting sales tax and petroleum levy so that there is no corresponding increase in the prices of essential items and maximum relief is provided to the common man.

Oil prices in Pakistan are still high today that are affecting consumers due to higher inflationary rates. Ogra has recommended an increase in the price of high-speed diesel which would have a direct impact on the consumers due to its use in the agriculture and transport sectors.

Earlier, the government had kept oil prices unchanged in Pakistan in a bid to provide relief to the consumers effective from May 17.

In order to provide relief to the common man, the Prime Minister has decided to maintain the prices of oil in Pakistan at the level of May 1, 2021, and a fortnight before that. The government has to adjust the Petroleum levy and sales tax as well on SKO and LDO to maintain the same prices.

The government will bear a revenue loss of Rs 2.77 billion for maintaining the same prices.

The oil prices in Pakistan stand at Ms petrol Rs.108.56 / liter, HSD. Rs.110.76/liter, SKO. Rs. 80.00/liter, LDO. Rs.77.65/liter

After a relief for few times following the oil prices in Pakistan, today we’re also kept unchanged.

Sources said that Oil and Gas Regulatory Authority (Ogra) proposed increase in price of high speed diesel by Rs 4.36 per liter, kerosene oil Rs 0.5 and LDO Rs 0.5 per liter. However, it has not proposed increase in price of petrol. 

Oil and Gas Regulatory Authority (OGRA) had proposed a hike in the prices of oil in Pakistan as petrol and high-speed diesel (HSD) by Rs 1.93 and Rs 3.35 per liter respectively effective from May 17, 2021.

It had moved a summary to the government for approval of oil prices in Pakistan. Earlier, the government had reduced oil prices in Pakistan up to Rs2.32 per liter effective from April 16, 2021.

The government had slashed the price of high-speed diesel (HSD) by Rs2.32 per liter, petrol price by Rs1.79 per liter, kerosene oil by Rs2.06 per liter, and light diesel oil (LDO) by Rs2.21 per liter.

The government had also slashed the prices of oil in Pakistan for the fortnight from April 1 to 15, 2021.

The agriculture and transport sectors widely use High-speed diesel. Therefore, the decision to keep oil prices unchanged in Pakistan will have a positive impact on these two sectors.

Ogra calculates ex-depot prices of petroleum products keeping in view the rate of petroleum levy and general sales tax. 

The kerosene price is also high. The people, living in remote areas of Pakistan use this fuel where there is a shortage of liquefied petroleum gas. The industry uses this fuel.

Petroleum products are a major contributor to taxes as the government is currently charging double tax. It is charging a petroleum levy and general sales tax as well that result in higher prices in Pakistan.