The federal government has increased the petrol price by Rs2.13 per liter. According to a statement by Finance Ministry, the rate of High Speed Diesel (HSD) has also been hiked by Rs1.79 per liter.
Meanwhile, the rate of Kerosene Oil is increased by Rs1.89 per liter and Light Diesel will go up by Rs 2.03 per litre.
The increase means the petrol will now cost Rs110.69, HSD Rs112.55, Light Diesel Rs79.68, and Kerosene Oil Rs81.89. The new prices are applicable from June 16th to June 30th.
OGRA Suggestion on Petrol Price:
Yesterday, Oil and Gas Regulatory Authority (OGRA) had proposed a hike of Rs4.20 per liter in petrol price. According to media reports, OGRA had sent a summary to the Petroleum Division to revise the prices for next 15 days. The authority had also sought a hike of Rs3.50 per liter in the price of diesel.
While keeping Petrol Levy (PL) and Sales Tax in view, OGRA calculates ex-depot prices of petroleum products and then suggests the price revision to the government. Currently, the PL on petrol is Rs4.80 per litre and Rs5.14 per litre on diesel.
The final decision on the price hike was taken after approval from Prime Minister Imran Khan. The premier had earlier rejected the price hike summaries multiple times.
International Prices:
It must be noted that the international prices of petroleum goods are at 32-month high and have regained all losses it faced during the COVID-19 pandemic. Moreover, the global crude oil has recorded gains for 4th week straight on Monday. Furthermore, the experts have forecasted better fuel demand and tightness in supply as travel restrictions have eased due to anti-COVID vaccination drives across the globe.
As mentioned earlier, the prime minister has not approved the price hikes in petroleum goods on last multiple times. Therefore, it is yet to see what decision he takes this time.
Do you think, this price hike is justified? What impact will the expected hike have on local consumers? Share your thoughts in the comments section.
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