Petrol soars past Rs100 barrier — again
Fuel prices reached record highs after the government raised the prices of all petroleum products and compressed natural gas (CNG) for the third time this month on Friday.
Petrol, hiked by Rs7.77 per litre, will now cost Rs104.55 per litre following the latest weekly review of fuel prices. The price of petrol has risen by almost Rs20 cumulatively in August.
Applicable from today, Saturday, diesel – used mostly in public transport, tractors and tube wells – would be sold at Rs112.13 per litre, after an increase of Rs5.94 per litre.
Similarly, the price of CNG in northern region, including Khyber-Pakhtunkhwa, Potohar and Balochistan, has been increased by Rs7.11 to Rs95.72 per kilogramme. CNG price in the second region – Sindh and Punjab, excluding Potohar – has been raised by Rs6.50, to retail at Rs87.44 per kg.
No cushion for consumers
A senior government official said the petroleum ministry had moved a summary on Friday, recommending that the finance ministry absorb half of the total impact of the global hike in fuel prices by cutting the rate of petroleum levy – a tax the government charges fuel consumers.
The finance ministry, however, rejected the proposal and decided to go ahead with the full price hike. Besides increase in international prices, the worsening rupee-dollar exchange rate is another reason for the steep price hike.
Weekly review
Earlier, following political pressure, the government was forced to review its decisions in case of significant increase in fuel prices.
Back then, however, prices were reviewed on a monthly basis; that was changed to a fortnightly review, and now prices are determined on a weekly basis.
The weekly price review is already facing criticism from opposition parties and parliamentary panels.
The Public Accounts Committee and the National Assembly’s standing committee on petroleum, both headed by treasury members, had rejected the increase in petroleum prices announced on August 22, immediately after Eid. Critics of the weekly review say it benefits the petrol pump owners and oil marketing companies, both of whom hoard the products when they feel a price increase is likely.
Other fuels
High Octane Blending Component (HOBC), used in premium cars, has faced the steepest hike in the current review. After an increase of Rs8.18, HOBC will be sold at Rs133.19 per litre this week.
The price of kerosene, used in cooking stoves and lamps in far-flung areas where other fuels are not available, has also been increased by Rs5.86 per litre. Its price has soared to Rs102.21 per litre.
Light Diesel Oil, used in industry, would be sold at Rs98.84 per litre, after an increase of Rs5.54 per litre.
Published in The Express Tribune, September 1st, 2012.
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thank you PPP and all the liberals and seculars for still supporting them
It's good that they are passing on the increase. The alternative is going to cost people even more.
Now if only they would bring CNG prices up to parity with petrol prices. If they've decided to phase out CNG they need to stick to that decision and increase CNG prices.
Democracy is taking revenge from the people of Pakistan. A surgeon who only knows operation of any illness, is treating the nation his patients to collect his operation fees.
Is this money going towards decreasing the circular debt ? No, it is most probably going towards buying French style mansions in Texas USA.
So what? Price is still lower than Canada (a major net exporter of oil) and all of Europe. Pakistan is a net importer of oil. You cannot subsidize something you cannot produce yourself. That would be the equivalent of taking out a loan from a bank, that you will have to return with interest, to give money to your neighbour's friend's uncle's gradnfather's second wife's daughter at no cost.
The solution is not to ask for a handout from the government in way of subsidies. Try asking for higher wages from your employers. If your employer is the government, insist on higher tax collection so that they can generate the revenue to pay you more. If neither idea sounds pleasant, just start using a bicycle. Millions in the west have reverted to using bicycles for commuting to and from work, and for running errands on a daily basis. Suck it up buttercups.
Wow what the one more welfare step taken thrice in a month by the PPP's government for the nation to curtail,decrease and lessen the nation's problems and difficulties especially controlling increasing expensiveness!!!!!!! This has been proven that PPP's government has taken the only steps which increased expensiveness,difficulties and problems in the nation's lives whereas PPP's leadership has been claiming from last 4.5 years that PPP's main agenda is to serve the nation and Pakistan and to make prosperous Pakistan and its nation but the ground realities are against the facts and truths...
This is the third time in the month of August that Ministry of Petroleum increased the price of
petroleum products where as global hike of fuel took place once. This requires clarification.
Secondly, Dollar- Rupee exchange is already covered in increase in fuel prices. It appears that
use of CNG is being discouraged by bringing its price close to petrol. May we know about
progress in the exploration of gas reserves as increasing the price is not the mere solution?