The federal government on Thursday increased the cost of fuel by Rs5.40 per litre which of high-speed diesel (HSD) by Rs2.54 per litre.
On the other hand, the rates of kerosene and also light-diesel oil (LDO) were raised by Rs1.39 and Rs1.27, respectively. The brand-new price for petrol will be Rs118.09 per litre, diesel will certainly be Rs116.5 per litre, kerosene will be Rs87.14 and that of LDO will be Rs84.67.
The change was shared by Unique Aide to Prime Minister on Political Matters (SAPM) Shahbaz Gill, who claimed that the premier had actually made a decision to offer the general public “huge relief” by not raising rates based on the referrals of the Oil & Gas Regulatory Authority (Ogra).
He disclosed that Ogra, in view of climbing oil prices in the international market over the last few months, had advised that the rate of gas be raised by Rs11.4 per litre. “In contrast to Ogra’s suggestions, the prime minister just approved a boost of Rs5.40 per litre keeping in view public interest,” he tweeted.
The government would “endure the burden” that would arise due to not increasing the prices in line with Ogra’s recommendations and “giving the public maximum relief”, Gill added.
This is the second time the prices of petroleum products have increased in the last 15 days. The government had previously increased the prices of all petroleum products by up to 4.7 per cent at the beginning of July to pass on “partial impact” of rise in international prices.
The ex-depot price of petrol was increased by Rs2 per litre and that of HSD by Rs1.44 per litre. The ex-depot price of kerosene was increased by Rs3.86 per litre and that of LDO by Rs3.72 per litre, respectively.
The government had to reduce its tax on petrol and diesel to allow a minimum increase.
The finance ministry said at the time that the government maintained the practice of keeping the prices of petroleum products at an affordable level and had given up Rs252.4 billion petroleum levy it could have collected against the budgeted Rs30 per litre on all products. The ministry perhaps, however, did not know that under the existing law, it could collect Rs30 per litre petroleum levy only on petrol and diesel while its maximum rate on kerosene and LDO could not increase beyond Rs8-10 per litre.
It said Ogra had been recommending a substantial increase in the prices of petroleum products since May 1, corresponding to the increase in prices of petroleum products in the international market. However, the government absorbed the impact of increase by making adjustments in sales tax and petroleum levy. Currently, the petroleum levy rates are at the lowest level of the last six years, the finance ministry had said.