The price of petrol broke all previous records by reaching the Rs160 per litre mark.
However, the finance ministry in a statement said that the prices of petroleum products in the international market are showing a drastic increase and presently, they are at the highest level since 2014.
It said that despite the unabated increase in the prices since the beginning of the year, Prime Minister Imran Khan deferred the last review of rise in petroleum products’ prices on January 31, 2022 and advised against the Oil and Gas Regulatory Authority’s summary.
In order to provide utmost relief to the consumers, the government levied zero per cent sales tax and reduced petroleum levy against the budgeted targets.
Resultantly, the finance ministry said that the government was bearing the revenue loss of around Rs35 billion on fortnightly basis due to the petroleum levy and sales tax moves.
In the fortnightly review of petroleum products’ prices, the prime minister has considered the recommendation to increase the prices of petroleum products in line with change in the international oil prices. Despite the increase in the prices of petroleum products, petroleum levy and sales tax have been kept minimum.
Petrol will now be available at Rs159.86 against Rs147.83 per litre.
Petrol is an alternate of compressed natural gas (CNG) and used in cars and motorbikes. In Punjab, there is no indigenous gas in CNG retail outlets.
They use imported liquefied natural gas and therefore, the fresh increase will add to the miseries of the middle-class people who use petrol in motorbikes and small cars.
The government has also made a massive increase in the price of high speed diesel (HSD).
This fuel is used in transport and agriculture sectors. Therefore, increase in the price of HSD will have a direct inflationary impact on the masses who are already reeling under high inflation.
The government increased the price of HSD by Rs9.53 per litre. Its price has gone up from Rs144.62 per litre to Rs154.15.
The price of kerosene oil has also been increased by Rs10.08 per litre.
This fuel is used in remote areas of Pakistan like the northern parts of the country where liquefied petroleum gas is not available for cooking.
Pakistan Army also uses it in the northern parts.
It will now be sold at Rs126.56 against Rs116.48 per litre.
There is also an increase of Rs9.43 per litre in the price of light diesel oil (LDO). It will be available at Rs123.97 per litre against Rs114.54.
There has been a continuous increase in prices of petroleum products in recent months.
The geopolitical situation in the Middle East and Ukraine had also fuelled more hikes in prices of petroleum products.
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