Petrol dearer by Rs2.50, diesel by Rs1.75

ISLAMABAD: The government has increased petrol and diesel prices by Rs2.50 and 1.75 a liter respectively while keeping kerosene and other petroleum products’ prices unchanged with immediate effect from November 1, 2015 (today).
The Finance Ministry notified the new prices under which, petrol price has been increased from existing Rs73.76 per litre to Rs76.26/litre and High Speed Diesel (HSD) from Rs82.04 per litre to Rs83.79 per litre.
Acting against the advice of the Oil and Gas Regulatory Authority (Ogra), the government decided to retain the current prices of kerosene, high octane diesel and light diesel. The decision not to increase these items’ prices was made to provide relief to the masses in view of the coming winter season. Talking to newsmen in Islamabad on Saturday evening, Finance Minister Ishaq Dar said the government had only approved increase of Rs2.50 for petrol and Rs1.75 for hi-speed diesel from November 1.
Earlier, Ogra recommended increase of Rs5.28 per litre in petrol price, high speed diesel (HSD) Rs3.34 per litre, high octane blending component (HOBC) Rs5.73 per litre, kerosene Rs3.89 per litre, light diesel oil (LDO) Rs2.70 per litre.
Independent economists say that owing to falling oil prices in international market, the government should have passed on its benefits to the domestic consumers, but instead it increased its prices, which they think will hike in prices of other consumer goods in the market and jack up inflation.
Dr Hafiz Pasha, former deputy chairman Planning Commission and adviser to prime minister on finance said in his recent report launched from the platform of an Islamabad-based think tank, the Institute of Policy Reforms (IPR), said the government had introduced ‘hidden taxes’ on furnace oil in domestic market despite oil prices are falling internationally.
It has quietly levied regulatory duty of seven percent, statutory duty of five percent and 20 percent GST on furnace oil that has increased its price in the market.
The benefits of falling oil prices which were required to pass on to the consumers, these anti-masses measures have been estimated to mop up additional Rs31 billion from energy sector, as to help the Federal Board of Revenue (FBR) meet the revenue target.