Petrol prices will decline by 1.7% across the country, effective Tuesday (today), according to an announcement made by the Oil and Gas Regulatory Authority (Ogra), a decline that is less than the drop in global oil prices.
The government appeared to take advantage of a drop in global oil prices to once again raise the taxes on petroleum. Had the local decline been in line with international prices, petrol prices would have dropped by about Rs5 per litre from their current price of Rs88.95 per litre.
Instead, the government will allow a reduction in price of Rs1.54, or about 1.7%, with the remainder being covered through an increase in the petroleum levy, which is now Rs10 per litre.
The price of high speed diesel fuel remained unchanged. International price declines dictated a drop of about Rs0.18 per litre, which the government decided not to pass on to consumers and instead raised the tax on diesel by that amount.
Published in The Express Tribune, November 1st, 2011.
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