Govt drops petrol bomb days before Eid

The new government on Sunday increased the price of petrol by Rs9.66 per litre effective from Monday (today) in line with the fluctuation in global oil prices -- just as the inflation-hit people were preparing to celebrate the upcoming Eidul Fitr.

However, it decreased the price of high-speed diesel (HSD) by Rs3.32 per litre on the recommendation of the Oil and Gas Regulatory Authority (Ogra).

Petrol will now be available at Rs289.41 per litre against its previous price of Rs279.75 per litre.
Meanwhile, HSD will now cost Rs282.24 per litre instead of Rs285.56.

Justifying the hike, the finance ministry in a statement said the price of petrol had increased in the international market during the last fortnight while the rate of HSD had marginally declined.

It added that the government had accordingly decided to revise the existing prices of petroleum products from April 1.

The ministry further said the price adjustments were in line with the government’s policy of passing on the variations of prices in the international market to the domestic one.

It said the consumer price of HSD had been accordingly decreased once again, after a downward revision in the middle of March this year.

Petrol is mainly used in cars and motorcycles.

Its use in Punjab is higher as CNG stations in the province lack the supply of indigenous gas. They are provided with expensive imported gas.

HSD is widely used in transport and agricultural sectors. Therefore, the decision to cut its price will have a healthy impact on the farmers and other people as it may reduce the inflationary impact.

On Ogra’s recommendation, the price of LPG has been reduced to Rs250,341.58 per ton from Rs256,790.16 per ton, registering a decline of Rs6,448.58 per ton.

An LPG cylinder’s price has been reduced from Rs3,030.12 to Rs2,954.03 for domestic consumers.

Kerosene oil and light-diesel oil (LDO) prices have also been slashed by Rs2.27 per litre and Rs0.38 per litre, respectively, from their previous rates of Rs186.39 per litre and Rs167.80 per litre.

Read more: Govt set to hike petrol prices by over Rs3/litre

Kerosene is primarily used for adulteration and lighting in remote areas, while LDO is used by flour mills and a few power plants.

Currently, the government is charging a levy of Rs60 per litre on almost all petroleum products.

The International Monetary Fund (IMF) is pushing the government to impose a general sales tax (GST) of Rs18 per litre on the petroleum products.

Presently, there is no GST on these products.

If the government imposes the GST, the prices of petroleum products will go up further up in the coming months.

(With input from APP)