ISLAMABAD: The federal government increased the price of petroleum products by up to Rs12.03 per litre on Tuesday, bringing the price of petrol to a new high of Rs159.86 a litre, effective February 16. (today).
Petrol prices surpassed all previous records by reaching Rs160 per litre.
However, the finance ministry stated in a statement that petroleum product prices on the international market have risen tremendously and are now at their highest level since 2014.
Despite the persistent rise in prices since the beginning of the year, Prime Minister Imran Khan deferred the last review of price increases in petroleum products until January 31, 2022, and advised against the Oil and Gas Regulatory Authority’s summary, according to the statement.
To provide maximum relief to customers, the government imposed a 0% sales tax and decreased the fuel charge in comparison to the planned targets.
As a result, the finance ministry estimated that the government was losing roughly Rs35 billion per fortnight due to the petroleum levy and sales tax changes.
The prime minister examined the request to raise petroleum product prices in line with changes in international oil prices at the fortnightly review of petroleum product prices. Despite the fact that the price of petroleum products has risen, the petroleum levy and sales tax have remained low.
Petrol will now cost Rs159.86 per litre, down from Rs147.83 previously.
Petrol is a compressed natural gas (CNG) alternative that is used in automobiles and motorcycles. There is no indigenous gas available in CNG retail stores in Punjab.
They rely on imported liquefied natural gas, thus the new price hike will exacerbate the misery of middle-class motorists who rely on gasoline for their motorcycles and small automobiles.
The government has also raised the price of high-speed diesel by a significant amount (HSD).
This fuel is used in both the transportation and agriculture industries. As a result, an increase in the price of HSD will directly affect the public, who are already experiencing severe inflation.
The price of HSD was raised by Rs9.53 per litre by the government. Its price has risen from Rs144.62 to Rs154.15 per litre.
Kerosene oil has also seen a price hike of Rs10.08 per litre.
This fuel is used in Pakistan’s isolated areas, such as the country’s northern regions, where liquefied petroleum gas is not available for cooking.
It is also used by the Pakistan Army in the north.
It will now be sold at Rs126.56 per litre, up from Rs116.48 previously.
The price of light diesel oil has also increased by Rs9.43 per litre (LDO). It will cost Rs123.97 a litre, as opposed to Rs114.54.
In recent months, the price of petroleum products has been steadily rising.
The geopolitical situation in the Middle East and Ukraine has also contributed to an increase in petroleum product prices.
