Govt keeps petrol price unchanged

As the by-polls are being held on Sunday (today), the PML-N led coalition government on Saturday decided to keep the prices of petroleum products unchanged apparently in a bid to win the support of the voters and produce a “feel-good effect” to dilute the political noise being created by the PTI.

Finance Minister Ishaq Dar, who is in the United States to hold important meetings with the global lending institutions, announced in a video statement that rates of oil would be maintained for the next fortnight – October 16 to 31.

The finance minister had received a summary in Washington which was moved by the Oil and Gas Regulatory Authority (Ogra).

Dar said in the video statement that he had consulted Prime Minister Shehbaz Sharif and decided to keep the oil prices unchanged.

According to recommendations, a minor reduction was suggested in the price of petrol whereas a proposal to increase the price of diesel, kerosene oil and light diesel oil (LDO) was on the cards.

Dar said the government would not pass on the recommended minor reduction in the price of petrol to the consumers.

According to the industry officials, a reduction in the price of petrol by around Rs10 per litre was in the offing. However, an increase was suggested in the price of diesel by Rs11 per litre, kerosene oil by Rs4.52 per litre and LDO by Rs7.48 per litre.

Meanwhile, the average rate of dollar also declined from Rs235.95 to Rs222.13 and its impact on oil prices had been worked out at Rs13.82 per litre.

The government had decided to maintain the existing price of petrol at Rs224.80 per litre, diesel Rs235.30 per litre, kerosene oil Rs191.83 per litre and LDO Rs186.50 per litre.

As diesel in widely used in transport and agriculture sectors, fluctuation in its price has a direct impact on the life of consumers.

Petrol, which is used in motorbikes and cars, is an alternate for CNG. Due to the shortage of gas in Pakistan, especially in Punjab, the demand of petrol widely increased.

Kerosene, an alternate for LPG, is used in remote areas and is consumed for cooking purposes. The armed forces are also a main consumer of kerosene oil in northern parts of the country.

Earlier, the government had placed a major cut in the price of petroleum products by up to Rs12.6 per litre effective from October 1.

The government, reportedly, is using the energy prices as a tool to win support of voters in the by-polls.

The National Electric Power Regulatory Authority (Nepra) had also decided to increase the power tariff by Rs3.21 per unit put a burden of Rs94 billion on consumers. However, on Saturday, it claimed that there would be no increase in the existing rates.

This is stated to be a technical fraud as the past tariff increased on quarterly adjustment was going to end and the government would have to impose new tariff on the consumers on account of fourth quarterly adjustment.

Now, the existing tariff would continue but there will be an imposition of new tariff on the consumers to burden them with Rs94 billion.