Govt jacks up petroleum prices

The government on Thursday jacked up the prices of petroleum products by up to Rs8.14 per litre on the pretext that the earlier relief provided to the consumers had dented the fixed levy budget during the first quarter of fiscal year 2020-21 by Rs132.5 billion.

“In the previous petroleum prices [proposed by the Oil and Gas Regulatory Authority], a significant relief was provided to consumers. This has dented the Petroleum Levy budget of Rs152.5 billion July-September of 2021 as compared to Rs20 billion realised only,” the Finance Division said in a notification.

In a televised address to the nation on Wednesday, Prime Minister Imran Khan had hinted at an increase in the prices of fuel.

The new price of petrol is Rs145.82 per litre after an increase of Rs8.03 as compared with the previous Rs137.79. Similarly, high-speed diesel has risen by Rs8.14 to Rs142.62 per litre from Rs134.48.

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The rate of kerosene oil has increased by Rs6.27 to Rs116.53 per litre as against Rs110.26, while that of light diesel oil has shot up to Rs114.07 per litre from Rs108.35.

On October 30, Premier Imran had turned down a proposal of Ogra for increasing fuel prices from November 1.

In the summary sent to the prime minister, Ogra had proposed to increase the price of petrol by Rs11.53 per litre, HSD by Rs8.49, kerosene oil by Rs6.29 and LDO by Rs5.72.

According to the notification, Prime Minister Imran Khan had not agreed with the proposals worked out by Ogra and the Finance Division and directed to maintain the prices as Notified on October 16. “Maintaining the Oct 16 petroleum prices [for first half of November] had some underlying concerns like cash flow issues due to short recovery of the cost.”

It said that the prices of petroleum products had been increased partially as compared to prices worked out by Ogra. “If the government had accepted Ogra’s recommendation, the new prices would have been much higher.

“In fact, the government has absorbed the bulk of the pressure after making adjustments in the sales tax and Petroleum Levy.”

The Finance Division stated that the government was cognisant of its responsibility to provide maximum relief to the consumers.