ISLAMABAD: The government has dropped additional petrol and CNG bombs on the people by approving a hefty increase in the prices of most petroleum products and CNG.
The Finance Ministry has approved the proposal forwarded by the Oil and Gas Regulatory Authority (Ogra), seeking an upward revision in the prices of petroleum products, with the exception of diesel.
The new prices will come into affect midnight tonight for the duration of one week under the weekly mechanism to review the prices of POL products. According to the approval, the price of petrol has been raised by Rs6.82 to Rs106.72 a litre. This is the highest-ever increase in the price of petroleum.
The price of CNG is to be increased by Rs6.20 a kilogramme; the new retail price of CNG in the Punjab and Khyber Pakhtunkhwa will now be Rs97.69 a kilogramme. Meanwhile, the price of kerosene oil will be Rs104.68 a litre. The price of high speed diesel was slashed by Rs1.74 a litre while the price of light speed diesel was reduced by Rs0.14 a litre.
Monitoring report: The steepest ever Rs5.63 a litre hike in price not withstanding, diesel in India is still cheaper than its neighbours Pakistan and Bangladesh as also the US and the European countries.
Diesel prices were on September 14 raised by Rs5.63 per litre to Rs46.95 a litre in Delhi, the PTI reported on Sunday. Even so, diesel in India costs less than Bangladesh where a litre costs Rs49.08, and in Pakistan Rs59.56. In Nepal, it costs Rs57.91 per litre, according to a background note prepared by the Ministry of Petroleum and Natural Gas explaining rationale for the price hike. In the US, diesel is priced at Rs54.55 per litre while it costs Rs77.84 in France, Rs83.36 in Germany, Rs99.38 in the UK and Rs93.11 in Italy. The first hike in more than 14 months was triggered by a 28 percent surge in crude oil price and rupee value.