Prompted by soaring international rates, the price of petroleum products has gone up by about Rs3 per litre in Pakistan as announced by the Ministry of Finance on Saturday.
As per the notification issued, the price of petrol on Sunday (January 16) would rise from Rs144.82 to Rs147.83, while high speed diesel (HSD) would be sold at Rs144.62 instead of Rs141.62. Meanwhile, kerosene observed a price hike of Rs3 from Rs113.48 to Rs116.48, whereas light diesel (LD) can now be purchased at Rs114.54 instead of Rs111.21.
The finance division noted that petroleum products saw an upward trend in prices for the fourth consecutive week internationally, with a 6.2 percent rise last week. The division noted that the prices were at their highest since last year.
As per the announcement, the Oil and Gas Regulatory Authority (OGRA), in light of global market conditions, had recommended petrol prices be raised by Rs5.52 per litre, while HSD rates should be risen by Rs6.19 per litre.
However, the notification maintained that the current sales tax rate and petroleum levies were “much below the budgeted targets”, with Prime Minister Imran Khan having directed that the sales tax be slashed further to lessen the burden spurred by the international surge in prices. The notification furthered that the government would take a “revenue hit of Rs2.6 billion due to the reduction in the sales tax”.
In recent months, the rise in petroleum prices and levies has been steady every other fortnight owing to the government’s negotiations with the International Monetary Fund (IMF). An incremental increase of Rs4 at the beginning of every month would be observed in the levy till it has reached Rs30 per litre, whereas the GST would be adjusted on the 15th of every month
The federal government last increased the prices on December 31, 2021 with the petroleum products being slapped with a rise of a minimum Rs4 per litre.
