Prices of petroleum products hit all-time high

ISLAMABAD: Federal government on Tuesday announced a massive up to Rs 12.03 per litre increase in the prices of petroleum products with effect from February 16. The government opted to pass on full impact of drastic $95 per barrel Brent oil surge in the international market to mitigate the fortnightly revenue loss of around Rs 35 billion.

In a late night statement, Finance Division said Prime Minister Imran Khan deferred the last review of petroleum products’ prices on January 31, 2022 and advised against Oil and Gas Regulatory Authority (OGRA). “In order to provide utmost relief to the consumers, government levied zero percent general sale tax (GST) and reduced Petroleum Levy (PL) rate against the budgeted target. Resultantly, government is bearing the revenue loss of around Rs 35 billion (fortnightly) on account of budgeted to existing PL and ST rate”.

Prices of POL products likely to surge

The new ex-depot price of petrol is Rs 159.86 from Rs 147.83 per litre after Rs 12.03 per litre or 8.13 percent increase. The rate of high speed diesel (HSD) is also increased by Rs 9.53 or 6.5 percent to Rs 154.15 per litre from Rs 144.62 per litre. The rates of kerosene oil (KERO) and Light Diesel Oil (LDO) are also raised by Rs 10.08 per litre or 8.6 percent and Rs 9.43 or 8.2 percent per litre respectively. The price of KERO is now Rs 126.56 from Rs 116.48 per litre and LDO’s price is Rs 123.97 from Rs 114.54 per litre.

The statement further says that in the fortnightly review of petroleum products prices, Prime Minister has considered the recommendation to increase the prices of petroleum products in line wit change in the international oil prices. Despite the increase in the prices of petroleum products, PL and GST have been kept to minimum.

The government raised the Pl on petroleum products by Rs 4 per litre for second half of February to meet one of the conditions of IMF. The Pl on petrol is raised from Rs 13.92 per litre to Rs 17.92 per litre. The Pl rate on HSD is increased to Rs 13.30 per litre from Rs 9.30 per litre. The rate of Pl on KERO is increased to Rs 5 per litre from Rs 1 per lire and Pl on LDO is also raised to 9.50 per litre from Rs 5.50 per litre, according to oil marketing companies.

Copyright Business Recorder, 2022