The recent media reports have suggested that Oil and Gas Regulatory Authority (OGRA) has suggested another price hike in petrol prices. As per reports, the authority has recommended Rs12 increase in petrol prices and Rs10 in High-Speed Diesel (HSD) price, in a summary to the Finance Ministry.
Under the chairmanship of Dr Hafeez Sheikh, the Finance Ministry will make the final decision after consulting the summary with Prime Minister Imran Khan.
Earlier on January 15, the federal government once again hiked the petrol prices. According to a notification by the Ministry of Finance, the government hiked the petrol price by Rs3.20. Meanwhile, HSD rate was increased by Rs2.95 per liter, Kerosene Oil by Rs3 per liter and Light Diesel Oil (LDO) by Rs4.42 liter.
The new prices were implemented from January 16, 2021. It is pertinent to mention that the government now revises the prices of petroleum products after every 15 days. Previous governments used to take the decision on monthly bases.
Current Petrol Prices:
After the last hike, the current price of petrol is Rs109.20, HSD‘s rate is Rs113.19. Meanwhile, the price of Kerosene Oil is Rs76.65, and Light Diesel Oil costs Rs76.23.
Price Hikes on December 30:
On December 30, the federal government increased the petrol price by Rs3 per litre. The new prices were implemented on January 1, 2020. According to an announcement by the Ministry of Finance, all petroleum products’ prices were increased from 3 percent to 8 percent.
As per the notification, high-Speed Diesel (HSD) prices had also been increased by Rs3. Meanwhile, the rates of Kerosene Oil and Light Diesel Oil (LDO) were jacked up by Rs5, respectively.
In doing so, the government had taken a significant revenue hit, as it reduced its Petroleum Levy (PL). The ministry said that PL on petrol had been reduced by Rs4.50 per litre and about Rs2.51 per litre on HSD. Meanwhile, it reduced the Levy on kerosene oil by 55 paisa per litre and increased by about 65 paisa per litre on LDO.