Although the government decided to retain the petrol price in Pakistan, however, a lot was happening in the oil industry. In the last few days, the federal government has taken two major steps rather silently.
Firstly, the government has hiked the margin of Oil Marketing Companies (OMCs) up to Rs. 1.32 per liter on the sale of petroleum products. The new margin is applicable from December 1, 2022. Although Rs. 1.32 doesn’t sound much, it is an almost 50% increase in the margin for OMCs. After this, the margin reached Rs. 4/liter on petrol sales and Rs. 5/liter on diesel sales.
Petrol Levy Increased
Secondly, the government has also increased diesel’s petroleum levy (PL) by Rs. 12/liter. This hike has brought the levy to Rs. 25/liter on diesel while the PL on petrol is already Rs. 50/liter. The PL has been increased on both products under the agreement with International Monetary Fund (IMF) to meet its revenue targets.
Although the crude oil prices in the global market are dropping, but the government has not passed on the benefit to the masses; instead, it has increased the OMCs’ margin and levy.
Current Fuel Prices in Pakistan
Last week, Minister of Finance and Revenue Senator Ishaq Dar stated that the government had decided not to change petrol and diesel prices. Meaning prices were retained at Rs. 224.80 and Rs. 235.30, respectively.
In contrast, the price of kerosene oil was reduced by Rs. 10 whilst light diesel price observed a cut of Rs. 7.50. As per the minister’s statement, the prices were decreased, taking into account the havoc witnessed after the flood in lower-income areas. The revised prices were implemented on December 1, 2022.
Although the government has retained the petrol price for the last one-and-a-half months, but the benefit of the drop in international prices has not been transferred to the people, which is a burden to the inflation-hit masses.
What do you think about the government’s increasing OMCs margin and PL? Please share your thoughts in the comments section.
