Pakistan

Petrol price jacked up by Rs5 per litre

HSD price soars by Rs13 per litre

Zafar Bhutta March 16, 2023

A worker holds a nozzle to pump petrol into a vehicle at a fuel station. PHOTO: REUTERS

ISLAMABAD:

The government on Wednesday increased the price of petrol by Rs5 and high speed diesel (HSD) by Rs13 per litre.

The new prices will be effective from March 16 (today).

“In the last fortnight, Platts Singapore prices registered an increase. This along with a depreciation of Pak Rupee has resulted in an increase of POL products in Pakistan,” the finance ministry said a statement.

According to the ministry, petrol will now be available at Rs272 per litre, as compared to its previous price of Rs267 per litre. Likewise, the government enhanced HSD price by Rs13, from a previous Rs280 per litre to Rs293 per litre now.

The increase in the price of kerosene oil has been kept at Rs2.56 by reducing the government dues on it. It will now be sold at Rs190.29 per litre as compared to its previous price of Rs187.73 per litre.

Read Petrol price slashed by Rs5 per litre

The price of Light Diesel Oil (LDO) has been kept unchanged by adjusting the government dues. It has been maintained at Rs184.68 per litre.

The free fall of the rupee against the dollar has hit oil consumers again. The local currency had witnessed depreciation by Rs15.97 from Rs262.14 to Rs278.97 to a dollar during the first fortnight of March, setting stage for a hike in prices of petroleum products.

The government is currently charging Rs50 per litre petroleum levy on petrol and HOBC.

Petrol is used in cars and bikes. Its price has already gone up to a record level.

The increase in the price of HSD, which is widely used in agriculture and transport sectors, is expected to majorly impact the common man and farmers who use the fuel in tractors.

Meanwhile, kerosene oil is used for cooking purposes in remote areas of Pakistan where LPG is not available. Pakistan Army is also key consumer of the fuel in the northern parts of the country.

The Oil Companies Advisory Council (OCAC) has strongly protested against the artificial control on oil prices by the government which put additional burden on the industry because of the failure of recovering exchange losses.

It has already requested the government to recover losses in the oil sector's exchange rate through the inland freight equalisation margin (IFEM) in order to save the industry.

Comprising OMCs and refineries, the OCAC had warned that the sudden depreciation of the rupee against the dollar had created a dire situation.

The industry has been requesting the energy and finance ministries to develop a mechanism for the recovery of all exchange rate losses.

The OCAC had asked for an immediate establishment of a holistic mechanism to offset losses through the IFEM.

It had also warned that the industry was on the verge of collapse and requested the government to take immediate action to ensure uninterrupted supply of petroleum products across the country.