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Lahore
Tuesday, May 17, 2022
EditorialFuel price hike is imminent

Fuel price hike is imminent

The prime minister has turned down a summery by the Oil and Gas Regulatory Authority (OGRA) seeking a hefty increase in the prices of petrol and diesel. The sought price hike reflects the international price trends. Fuel prices have gone up multiple times after the Russian invasion of Ukraine. OGRA, however, went ahead with a notification to increase the price of LPG under which the price of an 11.8 kg domestic cylinder of LPG has gone up to Rs2,916.11. According to the notification, the price of LPG has been increased by Rs13.31 per kg, bringing the price to Rs247.12 per kg and the new prices will be enforced from April 1. The price hike is neither temporary, nor the final one. In the coming months, if not weeks, the nation should brace for more such notifications. And such notifications have political implications.

The biggest chunk of our resources goes to fuel import bills, thanks to increasing demand of POL products. The reason for this is the rapidly growing population of the country, against which our resources are dwindling. The fact is that in the last 20 to 25 years, the demand for gas in the country has exceeded its supply, due to which there is a decrease in gas production locally, so Pakistan had to import gas regularly in 2015.

According to the Pakistan Bureau of Statistics, domestic gas production in the country has fallen to alarming levels. Imported gas still meets 23% of the country’s demand. The whole world is currently negotiating agreements on energy and its sustainable supply or working on alternative energy sources, but we are unable to implement the agreement reached with Iran due to US pressure or alternative sources.

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