Govt jacks up petrol price by Rs2 per litre

Price of high-speed diesel also increased by Rs1.44 per litre

The government has increased the prices of petrol by Rs2 per litre and that of high speed diesel (HSD) by Rs1.44 per litre for the first fortnight of July, effective from today [Thursday].

The government has also hiked the price of kerosene oil by Rs3.86 per litre and the price light diesel oil (LDO) by Rs3.72 per litre, said a statement issued by the Finance Division on Wednesday.

“In order to provide maximum relief to the consumers, the government has maintained the practice of keeping the prices of petroleum products at an affordable level,” the statement added.

The Oil and Gas Regulatory Authority (Ogra) has been recommending substantial increase in the prices of petroleum products since May 1 in view of an increase in prices of the petroleum products in the international markets.

Read more: Ogra seeks major hike in fuel prices

However, the government has absorbed the impact of the increase by making adjustments in sales tax and petroleum levy, it said. Currently, the petroleum levy rates are at the lowest of the last six years.

During the financial year 2020-21, the government has provided Rs252.41 billion subsidy to the consumers by keeping low the petroleum levy rates against the budgeted Rs30 per liter on all products.

“It is also worth mentioning that as compared to our regional neighbours, the Government of Pakistan is providing petrol and diesel at the lowest levels rates,” the Finance Division claimed.

On June 28, the price of petrol in Pakistan was Rs110.6 per litre. However, in terms of Pakistan rupees the price of one litre petrol in India was Rs214.10; in Bangladesh Rs165.8; in Sri Lanka Rs146.1; in China Rs181.6; in Nepal Rs169.1 while the price of one litre petrol in Bhutan was Rs145.7.

Ogra on Tuesday recommended that the government increase the price of petrol by Rs6.05 per litre and the HSD by Rs3.44 per litre for the first fortnight of July.

Also read: 63% of Pakistanis see rise in fuel, power prices

In its calculation submitted to the Petroleum Division and the Finance Division, Ogra had proposed an increase in the prices of almost all the petroleum products. Ogra’s calculation was based on the existing petroleum levy of Rs3.61 per litre and Rs2.97 per litre on the HSD and petrol respectively.

After the increase, the price of petrol will go up from the existing Rs110.69 per litre to Rs112.69 per litre and the price of the HSD will go up from the current Rs112.55 per litre to Rs113.99 per litre.

Similarly, the price of kerosene will go up to Rs85.75 per litre from the existing Rs81.89 per litre and the LDO will go up from the existing Rs79.68 to Rs83.40 per litre.