Whopping increase in prices notified
WASIM IQBAL
ISLAMABAD: The government on Friday increased price of petrol by Rs 25.58 per litre effect from June 26 in an early monthly review.
Oil and Gas Regulatory Authority (OGRA) sent the summary to Finance Division on the advise of the federal government.
In a statement, Finance Division says that the price of petrol has been increased from existing Rs 74.52 to Rs 100.10 per litre by Rs 25.58 or 35 percent increased.
The price of diesel has gone up to Rs 101.46 from existing Rs 80.15 with an increase of Rs 21.31 per litre or 26 percent increased.
The price of kerosene oil has been hiked by Rs 23.50 per litre from current Rs 35.56 to Rs 59.06 per litre. It has 66 percent hike. The price of light diesel oil goes up by Rs 17.84 from Rs 38.14 to Rs 55.98 per litre or 44 percent increased. After increase, the government will continue charging Rs 30 per litre petroleum levy on petrol and diesel, 6 per litre on kerosene oil and Rs 3 per litre LDO, however it allowed to increase the ex-refinery prices.
Sources said the government maintained the general sale tax (GST) on standard 17 percent.
The decision to revise the prices of petroleum products upwards was taken “in view of the rising oil prices trend in the global market”, the brief statement issued by the Finance Division said.
Sources said that the decision to increase the prices of petroleum products have been taken immediately based on the prices of cargos of three Oil Marketing Companies (OMCs) including Pakistan State Oil (PSO) which reached at Karachi.
Global oil rates have regained some ground from March lows as the easing of restrictions on transport and industrial activity to curb the spread of the coronavirus pandemic boosted fuel demand around the globe. Brent crude futures had hit a 21-year low of $15.98 per barrel in April has reached to $41 per barrel in June.
The new prices will be effective from June 26 to July 31, 2020.
Sources in OGRA told Business Recorder that Petroleum Division directed Chairperson OGRA the revised ex depot sale prices of petrol and HSD worked out by Pakistan State Oil as on June 25, 2020 Rs 106.11 per litre and Rs 104.46 per litre respectively. The price of Kerosene Oil and Light Diesel Oil will also be revised based on pricing date as of June 25.
However, the government decided to reduce the ex depot sale price of petrol Rs 6 per litre and HSD Rs 3 per litre in a relief to masses.
