No Change In Petrol & Diesel prices For Third Time In A Row

0 644

In his televised address, Minister of Finance and Revenue Senator Ishaq Dar stated on Wednesday that the government has decided not to change petrol and diesel prices. Meaning, prices will be retained at Rs. 224.80 and Rs. 235.30, respectively.

In contrast, the price of kerosene oil has been reduced by Rs. 10 whilst, light diesel price has observed a cut of Rs. 7.50. As per the minister statement, the prices are decreased, taking into account the havoc witnessed after the flood in lower-income areas. The revised prices are implemented from December 1, 2022.

It is related to mention that the government has not changed petrol and diesel prices third time in a row. Where high POL prices have shattered the inflation-stricken-salaried-class, whooping diesel prices are hitting the agriculture and transport sector hard – directly trickling down the effect to the life of consumers.

The federal government’s efforts to maintain the petrol prices in Pakistan for the second consecutive time could cause Rs. 7.55 billion in losses to the struggling oil industry. An oil company SOS letter stated that it could also lead to disruption in supply chains. 

Current Petrol Price in Pakistan

Petrol currently costs Rs. 224.80/liter as its price has remain unchanged for last 45 days.

Meanwhile, the price of HSD was dropped by Rs. 12.13/liter, after which the new price is Rs. 235.30/liter.

Concerns of OCAC

The Oil Companies Advisory Council (OCAC), in its letter to the Minister of State for Petroleum Division, said the government had kept the fuel prices unchanged from November 16 to December 1, 2022, at the cost of the oil industry. The letter pointed out that prices were increasing under the government-approved pricing formula. 

However, the current government, “instead of passing on the increase to the end consumers or absorbing the impact by reducing the petrol levy, has reduced the Inland Freight Equalization Margin (IFEM), Exchange Loss Adjustment, and Margins of oil marketing companies (OMCs)”. And this will cause a massive loss of Rs. 7.55 billion in the next fortnight. 

Google App Store App Store

Leave A Reply

Your email address will not be published.