For the first time in the country’s history, petrol prices have crossed the Rs100 per litre barrier.
And for the first time in the country’s history, all three fuels – petrol, diesel and kerosene oil – will cost over Rs100 per litre effective Sunday (today). Price of CNG has also been raised by up to Rs11.55 per kg.
With a Rs8.02 hike, per litre petrol price has jumped from Rs97.66 to Rs105.68, according to a notification issued by the Oil and Gas Regulatory Authority (Ogra) on Saturday night.
Per litre price of high speed diesel was raised by Rs4.70 – from Rs103.46 to Rs108.16 – while the price of kerosene oil was raised by Rs5.29 – from Rs96.40 to Rs101.69 per litre.
The price of High Octane Blending Component has been raised from the current Rs126.87 to Rs135.81 – an increase of Rs8.94.
Ogra had proposed that fuel prices remain unchanged but the government turned down the recommendation. “The government would have to lose Rs3.25 billion in revenue if oil prices were not changed,” a senior government official said.
The government will pocket Rs25 billion on petroleum products from consumers in April, the official said, adding that due to the latest price hike, an additional Rs1.5 billion will be collected in revenue on account of sales tax.
The government had earlier decided, on a recommendation of a special parliamentary committee on oil pricing, to keep prices of HSD unchanged till June 2012.
That decision, however, was abandoned in favour of avoiding a subsidy and generating further revenue.
CNG prices reach new highs
In a simultaneous move, the government increased the prices of CNG by as much as Rs11.58 in the country. CNG prices were increased by Rs9.93 to Rs80.98 per kg in Sindh and Punjab.
Meanwhile, per kg prices were raised by Rs11.58 in Khyber-Pakhtunkhwa, Balochistan and Potohar region to Rs88.70.
The government has imposed 20% gas infrastructure development cess on CNG in a bid to collect revenue for gas pipeline projects. The price of CNG has also been brought to 55% of petrol.
Ogra authorities said CNG price hike was a decision of the federal government and it had not sent any advice to the government.
Published in The Express Tribune, April 1st, 2012.
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