Petrol, diesel, kerosene prices raised by Rs3/litre

ISLAMABAD: Owing to the crude oil touching the fresh seven-year high in international market, Pakistan also increased the petroleum products prices by Rs3/liter for the next half of this month. The new prices will be effective from today (Sunday) till 31 January 2022.

On Friday, the Global Benchmark Brent touched $86.36/barrel, the level last seen around seven-year ago in 2015.

In early December 2021, Brent even touched $66/barrel, which was recorded at $84.52 per barrel on 9 November 2021. Since then it again started inching up and on Friday it closed at $86.36/barrel.

According to Finance Division’s handout, prices of petrol has been increased by Rs3.01/liter, diesel and Kerosene by Rs3/liter each and Light Diesel Oil (LDO) price increased by Rs3.33/liter.

According to the decision, ex-depot price of petrol has been increased from earlier Rs144.82 to Rs147.83 per liter; high-speed diesel from Rs141.62 to Rs144.62 per liter, kerosene from Rs113.48 per liter to Rs116.48, and LDO price from Rs111.21 to Rs114.54 per liter.

The statement said, “The petroleum products are showing fourth straight weekly gain and witnessed an increase of 6.2 percent just in last week in the international market. Presently at the highest level since last year. The existing Sales Tax rate and Petroleum Levy on various petroleum products are much below the budgeted targets.”

It further said that against the recommendation of Ogra for increase of Rupees 5.52/litre in petrol and Rupees 6.191/litre in HSD prices, the prime minister has directed to absorb the international prices through further cut in Sales tax from last fortnight. The Finance Ministry will take Rs2.6 billion revenue hit due to reduced Sales Tax.

It is to be noted that the consumers in remote areas use kerosene for cooking where gas is not available. The LDO is being consumed by flour mills and a couple of power plants.

It is to be noted that for the last fortnight (Jan 1 to 15), the government had increased the prices of petrol and diesel by Rs4 per litre each. Prices of kerosene and LDO were also increased by Rs3.95 and Rs4 per litre respectively.

Chairman Pakistan People’s Party Bilawal Bhutto Zardari rejected the increase in the petroleum prices in the country and termed it economic murder of the people and said that after an increase of more than four rupees in the prices of electricity, now the increase in the prices of petroleum products by more than three rupees is an economic murder of the people and is a robbery on the pockets of the people.