Petrol Price To Increase From March 1

petrol price increased

From the past 3 months, The Oil and Gas Regulatory Authority (OGRA) had been decreasing the fuel prices in Pakistan because of an international slump in crude oil prices. If we compare the decline in fuel prices since October 2014, the overall reduction in the fuel prices is about 40%.

The steep decline in oil prices resulted in an increased fuel consumption in the country. Previously, the average daily consumption of petrol used to around 12,000 metric tonnes, which touched 40,000 metric tonnes and 30,000 metric tonnes in January and February respectively.The decline in fuel prices also caused a severe shortage of fuel throughout the Punjab province. But all of this would change from March 1.

Initial estimates suggest that the petrol price is likely to go up by Rs. 2 per liter, making the new petrol price Rs. 72.29 per liter. The prices of kerosene oil and light diesel oil would also go up by Rs. 4 and Rs. 3.5 per liter respectively.

However, this increase would not be applicable on the prices of high speed diesel, which is mostly used in SUVs and commercial transport vehicles. The prices of HSD are likely to come down even further by Rs. 6; from Rs. 80.61 per liter to Rs. 74.61 per liter.

It is to be noted that the sale of petroleum (POL) products is a major source of revenue for the government of Pakistan and due to this sudden decrease in global oil prices, the government of Pakistan increased the sales tax on POL products to 27% from 17% previously, which was an unprecedented move. It is very unlikely that the government will reduce the sales tax on the POL products anytime soon, even after this increase.

The final prices of the POL products would be decided today in a meeting, which would be attended by all the stakeholders of the oil industry.

via Express Tribune

Fahad Ullah

I build products and review cars for PakWheels. I am also famous for typing more words than anyone wants to read.

  • nawaz our saviour

    Stupid people will now blame this on our beloved Nawaz.

  • nawazthelooter

    Yeah right. Shitty nawaz increased the duty a huge 10%. Like that doesn’t even count.
    @nawazoursaviour you’re crazy man

  • Adnan Khan

    So, It Begins.

  • koolliver

    laanat apki is zara NAWAZI pe…

  • Fahad Mehmood

    The time to park the Prosmatec is near.

  • shurjil

    lol / hilarious man … good one

  • imran khan

    People like you are the reason Pakistan is what it is today.

  • Adnan Khan

    Fill the tank Before you Do.^^

  • Shahid Mehmood

    So it means we might face a little shortage today , because today is the last day of this month, and petrol pumps will reserve the petrol sale so that they can sell it at higher prices in few hours

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