Petrol Prices Increased Once More Amidst Dropping Oil Prices in International Market

petrol price

The Government of Pakistan has decided to increase the prices of petrol by Rs. 1 per liter. According to the new format, the prices of petroleum products are revised after every 15 days. The price of petrol was increased by Rs 2.25 at the start of February 2017.

Earlier in the day yesterday, various news channels were reporting that the government had been advised to increase the price of petroleum products by as much as Rs. 16.71 per liter by the Oil and Gas Regulatory Authority. More appropriately, OGRA had suggested increasing the price of petrol by Rs. 1.92 per liter and high-speed diesel by Rs 2.03 per liter. The biggest shock once more was the suggestion to increase the prices of kerosene oil Rs 16.71 per liter.

However, the federal government decided to review the OGRA proposal summary and increased the prices marginally. Finance Minister Ishaq Dar was talking to the media yesterday when he said, “The government has decided to increase the price of MS-92 RON petrol and the high-speed diesel by Rs1 per liter. This is almost half of the increase recommended by Oil and Gas Regulatory Authority,”

On the other hand, the prices of oil fell below $56 per barrel in the international market just yesterday when OGRA proposed an increase. The US oil fields are producing enough crude oil to supply its domestic as well as foreign markets. Just last week, the US crude oil surplus exceeded to as much as 9.9 million barrels. OPEC (Organization of the Petroleum Exporting Countries) members are working towards cutting the crude oil production just because of the continuously falling oil prices amongst increased competition from the US oil producing companies. OPEC members along with Russia will be reducing the production to 1.8 million barrels a day for first six months of the year 2017.

After the implementation of new oil price tariff, the price of petrol now stands at Rs. 71.29 per liter, whereas the price of diesel is Rs. 80.48 per liter, an increase of Rs. 1 per liter from previous Rs. 79.48 per liter.

Although OGRA had suggested the most increase in the price of kerosene oil, Finance Minister Dar decided not to increase the price of this oil in a bid to provide relief to Pakistani masses. The prices of both the kerosene oil and the light speed diesel have not been increased. According to the Minister, the government will be providing a subsidy of Rs. 1.41 per liter on light speed diesel and Rs. 2 per liter on the kerosene oil.

The government decided to maintain the prices of petroleum products from April 2016 to December 2016. But now it feels like the new 15-day price revision format has been implemented to get back whatever it was unable to collect last year.

New Prices:

  • Petrol (RON-92) = Rs. 71.29 per liter.
  • High-Speed Diesel = Rs 80.48 per liter
  • Kerosene oil = Rs. 43.25 per liter.
  • Light diesel oil = Rs. 43.35 per liter.

 

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