Thursday January 27, 2022

Petrol price hike: How much have POL prices increased by in FY 2021-22?

Price of high-speed diesel has been increased by Rs30.7 in current fiscal year

By Web Desk
November 05, 2021
A representative image.
A representative image.

The price of petrol has increased by Rs35.13 in the current fiscal year after the latest hike of Rs8.03 per litre.

The Oil and Gas Regulatory Authority (OGRA) on Friday dropped a bomb on the people when it announced a new increase in prices of POL products across the country which became effective from today (Nov 5).

After the increase, petrol is now being sold at Rs145.82 per litre.

Similarly, the price of high-speed diesel (HSD) has been increased by Rs30.7, while kerosene oil’s price has been hiked by Rs34.64 during fiscal year 2021-22.

Per the notification, the new price of HSD — the country’s most widely consumed fuel — has reached Rs142.62 per litre after an increase of Rs8.14 per litre.

Kerosene oil will now sell for Rs116.53 per litre after an increase of Rs6.27 per litre. Light diesel oil (LDO) will cost Rs114.07 following an increase of Rs 5.72 per litre.

The finance ministry, in its notification, said that the government is absorbing much of the burden and not passing it to the consumers.

“On November 1, 2021, the Prime Minister had not agreed with the proposals worked out by OGRA and the finance division and directed to maintain the prices as notified on October 16, 2021,” read a statement issued by the government.

It, however, added that maintaining the October 16, 2021 petroleum prices had some underlying concerns, for example, cash flow issues due to short recovery of the cost.

“It is important to note that in the previous petroleum prices, a significant relief was already provided to the consumers,” the Ministry of Finance said.

“The government is cognisant of its responsibility to provide maximum relief to the consumers. This has dented the petroleum levy budget of Rs152.5 billion during July-September 2021 as compared to Rs20 billion realised only.

“Foregoing in view, the prices of petroleum have been increased partially as compared to the prices being worked out by OGRA.”

The statement added that if the government had accepted OGRA’s recommendation, the new prices would have been much higher.