Govt blames corona, surge in intl POL prices for latest hike

Information Minister Shibli Faraz has blamed coronavirus pandemic and the surge in international oil prices, as the reason behind the government's decision to review POL prices.

In a tweet on Saturday, he said the prices of petroleum products have been reviewed due to surge in international oil prices.

"Coronviurus pandemic has affected economies around the world. Internationally, we have not seen such an increase in the prices of petroleum products. That is why the prices had to be revised."

"However, in Pakistan, the price grew less than in other countries in the region," he added

Meanwhile, Minister for Petroleum, Omar Ayub Khan has said that surge in the prices of petroleum products has been made because of the sharp increase of oil prices at the international market during the last month.

The government on Friday increased price of petrol by Rs 25.58 per litre effect from June 26 in an early monthly review.

Oil and Gas Regulatory Authority (OGRA) sent the summary to Finance Division on the advise of the federal government.

In a statement, Finance Division says that the price of petrol has been increased from existing Rs 74.52 to Rs 100.10 per litre by Rs 25.58 or 35 percent increased.

The price of diesel has gone up to Rs 101.46 from existing Rs 80.15 with an increase of Rs 21.31 per litre or 26 percent increased.

The price of kerosene oil has been hiked by Rs 23.50 per litre from current Rs 35.56 to Rs 59.06 per litre. It has 66 percent hike. The price of light diesel oil goes up by Rs 17.84 from Rs 38.14 to Rs 55.98 per litre or 44 percent increased. After increase, the government will continue charging Rs 30 per litre petroleum levy on petrol and diesel, 6 per litre on kerosene oil and Rs 3 per litre LDO, however it allowed to increase the ex-refinery prices.

Sources said the government maintained the general sale tax (GST) on standard 17 percent.

The decision to revise the prices of petroleum products upwards was taken “in view of the rising oil prices trend in the global market”, the brief statement issued by the Finance Division said.