KARACHI: The government on Monday increased the petroleum products prices up to 9.9 per cent for the first time in three months.
According to a notification issued by the Oil and Gas Regulatory Authority (OGRA), petrol prices have been increased by Rs7.23 per litre or 9.9 per cent with effect from March 1, taking the new rate to Rs80.19 per litre. The government increased diesel prices by 9.83 per cent or Rs7.70 per litre. The new per litre diesel price would be Rs 86.03.
Earlier, the Pakistan Petroleum Dealers Association suspended the supply of petroleum products and announced a strike in Karachi due to a proposed increase in petroleum prices. The association warned that the strike may soon spill over into other parts of the country if its demands are not met.
Resultantly, a large number of people came out on the streets on Rashid Minhas road, in Nazimabad and Shahrah-e-Faisal road in Karachi following the announcement of a strike by petroleum dealers. The protesters clashed with the police and rangers personnel who tried to take control of the situation.
The demonstrators blamed the pump owners for halting supplies fearing a possible increase in the petrol prices today.
Long queues of vehicles were seen in the city outside the few stations still running.
The Pakistan petroleum dealers’ association later decided to call off their token strike.
OGRA authorities said an increase in the prices is necessary according to levy collected two months ago, whereas six to seven per cent increase should be made in accordance to the levy collected in current situation.
Sources informed that the government is providing a subsidy of Rs15 billion on petroleum products and it will have to give an additional subsidy of Rs10 billion if current prices are not increased.
CNG prices revised
Ogra has revised its CNG prices keeping in view the Gross Calorific Value (GCV). The new prices will become effective from March 1.
Four different prices will be followed in the country's four provinces. CNG prices will rise in Islamabad, Rawalpindi and in areas from Attock to Jhelum. In Khyber Pakhtunkhwa, CNG will be available at Rs57 per kilogramme.
In inner Sindh and Balochistan, CNG will be availabe at Rs55.2 per kg. In Punjab and adjoining areas, CNG will now be available at Rs53.45 per kg.
According to All Pakistan CNG Association, OGRA's revised prices will raise gas prices in 2,600 CNG stations and reduce them in 500 gas stations across the country.
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ