Petrol price up by Rs5.40 per litre

Prime Minister Imran Khan has approved an increase in the price of petrol by Rs5.40 per litre in addition to LPG exceeding the official rate of Rs160 per kg after a hike of Rs5 per kg.

His special assistant for political communication, Shahbaz Gill, on Thursday tweeted that the price of high-speed diesel (HSD) had been jacked up by Rs2.54.

The prices of kerosene oil and light diesel oil (LDO) have been increased by Rs1.39 per litre and Rs1.27 per litre, respectively.

After the increase, the price of petrol will shoot up from the existing price of Rs112.69 per litre to Rs118.09. The price of HSD will go up from the current Rs113.99 per litre to 116.53.

Similarly, the price of kerosene will reach Rs87.17 per litre from the existing Rs85.75 and the LDO will go up from the existing Rs83.40 per litre to Rs84.67.

The PM’s aide said the government had provided “maximum relief” to the public by not increasing the prices as recommended by the Oil and Gas Regulatory Authority (Ogra).

Read More: Govt jacks up petrol price by Rs2 per litre

The new prices will come into effect from July 16 and remain unchanged until July 31.

Gill pointed out that the prices of petroleum products were increasing in the international market for the last several months. “Ogra had proposed a hike of Rs11.40 per litre in the price of petrol,” he added.

In a summary sent to the Petroleum Division, Ogra had proposed an increase of Rs2.40 for HSD. Additionally, it had sought a hike in the prices of kerosene and LDO by Rs1.5 per litre and Rs1.40 per litre, respectively.

Information and Broadcasting Minister Fawad Chaudhry tweeted that government had "no choice" but to increase the prices in view of the rate in international markets.

However, fuel prices in the country were still the lowest in the region, he added.

This is the second time fuel prices have been increased in the last 15 days. The government had earlier jacked up the prices of all petroleum products by up to 4.7% at the beginning of the current month to pass on "partial impact" of rise in international prices.

Separately, LPG Industry Association Chairman Irfan Khokhar said the price of the gas had been increased by Rs5 per kg “in the black market under the patronage of police and government officials”.

He added that a domestic cylinder was being sold at Rs1,950 after an increase of Rs60.

Similarly, the price of commercial cylinder has been increased by Rs225. “It is being sold at Rs7,490,” Khokhar added.

The price of LPG in Gilgit has reached Rs185 per kg.

The increase in prices comes at a time when the consumption of petroleum products in the power sector has declined by 43% and the demand and supply gap between gas production and consumption is likely to widen further in the next decade.