Pakistan

Petrol price hits record high at Rs147.83 per litre

Govt jacks up petrol price by Rs3.01; price of high-speed diesel also increased by Rs3 per litre

Our Correspondent January 15, 2022

PHOTO: AFP/FILE

ISLAMABAD:

The government on Saturday increased the prices of petroleum products by up to Rs3 per litre effective from January 16.

The finance division in a statement said that the petroleum products were showing a fourth straight weekly gain and witnessed an increase of 6.2% just in the last week in the international market.

“The existing sales tax rate and petroleum levy on various petroleum products are much below the budgeted targets,” it added.

“Against the recommendation of OGRA [Oil and Gas Regulatory Authority] for an increase of Rs5.52/litre in petrol and Rs6.19/litre in HSD [high-speed diesel] prices, the prime minister has directed to absorb the international prices through a further cut in sales tax from last fortnight.”

The statement added that the finance ministry would take a hit of Rs2.6 billion revenue because of reduced sales tax.

“Therefore, the government has decided to make [a] partial increase in the prices of the petroleum products in order to provide relief to the end consumers. The new prices of petroleum products with come into effect from January 16, 2022.”

The government has hiked price of petrol by Rs3.01 per litre from Rs144.82 to Rs147.83 per litre.

Petrol is used in cars and motorcycles. It is also an alternate to CNG.

During the winter season, the CNG stations in Sindh and Balochistan have been shut down. Therefore, the demand for petrol is likely to increase.

The government has also increased the price of HSD by Rs3 per litre from Rs141.62 to Rs144.62 per litre.

This fuel is widely used in transport and agriculture sectors. Therefore, the increase in its price will impact the lives of the people because of a possible increase in inflation.

The price of kerosene oil has also witnessed an increase of Rs3 per litre, taking its rate from Rs113.48 to Rs116.48 per litre.

Kerosene oil is used in remote areas for cooking purpose where LPG is unavailable.

The major user of this fuel is also the army in the remote areas of Pakistan like the country’s northern parts.

Also read: Petroleum prices likely to go up again as govt increases PDL

The price of light diesel oil has also gone up by Rs3.33 per litre from Rs111.21 to Rs114 54 per litre. This fuel is used in industries.

Petroleum prices are a major component of the country’s inflationary calculations.

At the start of the current year, Prime Minister Imran Khan had given the nod to an increase in oil prices by up to Rs4 per litre.

According to a notification issued by the Finance Division back then, the price of petrol and HSD would rise by Rs4 per litre for the first 15 days of January 2022.

After the increase, the price of petrol went up from the previous Rs140.82 per litre to Rs144.82 per litre. The price of HSD jumped to Rs141.62 per litre from the previous Rs137.62 per litre.

The rate of kerosene oil was increased by Rs3.95 to Rs113.53 per litre as against Rs1209.53 per litre.

The price of LDO had shot up to Rs 111.06 per litre from Rs107.06 registering a hike of Rs 4.15 per litre.

COMMENTS (1)

Arthur | 2 years ago | Reply We need to provide structures that provide protection against these price increases. The truth of the matter is that both the Inflation and the effects of the pandemic can be managed by governments and reserve banks such that people are not exposed to the real prices of the market but there is a delay factor within these transaction to limit the impact made by these price increases. In South Africa The Continuous Model Group has taken the led to provide protection against increases in prices of product and services with led product being the Fuel Price Insurance which allows you to Freeze the current price of Fuel per litre and offers Cash Claims that will offset any increase in prices on a monthly basis. This development has a potential of changing the perspective at which we view prices and enhances defence structures that against inflation. The continuous development of these model will enhance the creation of an environment where prices are certain while moving the the control of price increases to consumers

Replying to X