Ogra suggestions dismissed: Petrol price likely to go up in April

Petrol price likely to go up to Rs105.68 starting April 1.


Web Desk March 31, 2012

Suggestions of Oil and Gas Regulatory Authority (Ogra) of not increasing prices of Petroleum, Oil & Lubricants (POL) products and setting tri-monthly instead of monthly rates have been dismissed and POL prices are likely to go up by Rs8.94 starting April 1, Express News has reported.

Petrol price is to increase by Rs8.02, becoming Rs105.68 per litre, HOBC by Rs8.94 , making it Rs135.81 per litre, kerosene oil by Rs5.29 making it Rs101.69 and light diesel oil by Rs5.45, making it Rs98.74 per litre.

Inland Freight Margin delivery costs will also increase by Rs0.64, becoming 2.26 per litre.

COMMENTS (12)

Letsdomath | 9 years ago | Reply

Lets take a look at some basic math on whether gas prices in Pakistan are out of line:

Current average price of gasoline in the US is ~$4.00/gallon 1 gallon = 3.79 liters $ to Rupee exchange ratio is ~ Rs.91 for $1

So a gallon of fuel in rupees costs - 91*4= Rs 364 - this is the cost of fuel in the US, considered one of the cheapest places in the world for gasoline.

Now on a per liter basis that works out to 364/3.79 = Rs.96/liter.

Gas prices are now Rs.105 in Pakistan. or 9 rupees more than they are per liter in the US. If you compare this to the cost of fuel in England, Sweden, or other Westernized nations, you will find that our cost of gasoline, as a non-producing nation, is actually on the lower side.

The cash implications to an actual consumer in an economy where GDP/capita is shameful, are understandable, but lets not argue the fact which is our price of gasoline is not significantly higher than the rest of the world.

Harry Stone | 9 years ago | Reply

Who should pay the true cost of engery?

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