Wednesday, February 21, 2024

Government increased POL Prices for the Second Time in a Month

The government of Pakistan on Friday increased the petrol price by RS 3.20 that is effective from today, January 16, 2021 as by the approval of Prime Minister, Imran Khan.

The announcement was made by the Finance Division that states that the hike of PKR 3.20 per litre in price of petrol and a rise of RS 2.95 per litre for the high-speed diesel is set by the government.

Moreover, the price of the kerosene oil has increased by RS 3 per litre and the light diesel oil has become costlier by the price of RS 4.42 per litre.

In spite of this increase, the government has also claimed that it does not pass on by the full impact of global oil rates and also the exchange rates to general public as it is recommended by OGRA- the Oil and Gas Regulatory Authority.

The regulator has worked out as a massive increase in the prices of petroleum products also, that was based on standard of 17% of the general sales tax (GST) and the applicable petroleum levy for Rs30 per litre with an effect from today.

Following a hike in these prices, the new rates for the petrol now sets at RS 109.20 per litre; however, the price for the high-speed diesel is also increased to Rs113.19 per litre with an effect by today.

Rates of the kerosene oil and the light diesel oil were also raised by the prices of RS 3 and RS 4.42 respectively to the value of RS 76.65 per litre and RS 76.23 per litre for this month’s second half .

Meanwhile, the regulator had also proposed the hefty RS 13.07 per litre rise in the petrol price in total till now. And another RS 11.03 per litre increase had proposed for the prices of high-speed diesel.

Sales of the motor spirit the (MS/ petrol) jack up by 5% as to 0.67 million tons; however the high-speed diesel sales also grew up to 13% to 0.62 million tons as during the month of December, 2020 as compared to the previous month.

Petrol is excessively used in motorbikes and also in every vehicle like cars whereas the high-speed diesel is used for transport like in buses and trucks and in agriculture sectors.

Therefore, this increase in the prices will have an overall inflationary impact on the masses because it is widely used. On the other hand, the kerosene oil is used in the remote areas like the northern parts of Pakistan for cooking purposes as (LPG) liquefied petroleum gas or the Sui gas is not available there.

Mehjabeen Qasim
Mehjabeen Qasim
Business Journalist at Startup Pakistan

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