According to the official news report, the government on Wednesday raises prices of petrol by Rs2 per liter & that of high-speed diesel (HSD) by Rs1.44 per liter, despite a substantial increase in global prices of petroleum products.
As per the statement released by the Ministry of Finance, the rate of petrol will be Rs112.69 per liter & that of HSD will be Rs113.99 per liter from July 1.
Additionally, the rates of kerosene & light diesel oil (LDO) have already been raised by nearly Rs4, to Rs85.75 and Rs83.4 per liter, individually.
“To provide maximum relief to the consumers, the government has maintained the practice of keeping the prices of petroleum products at an affordable level,” the statement added.
The Finance Ministry statement further stated that, when compared to the local markets, the price of petrol in Pakistan still falling into the lowest tier.
The Oil & Gas Regulatory Authority (Ogra) has been proposing a considerable increase in the rates of petroleum products since May 1 from the perspective of the rise in prices of petroleum products in the international markets.
Still, the Govt has realized the effect of the upsurge by adjusting sales tax & petroleum charge; it said in the statement.
During the fiscal year 2020-21, the federal government has supplied Rs252.41 billion funding to the consumers by maintaining low petroleum levy prices versus the budgeted Rs30 per liter on all products.
According to a report by the Ministry of Finance, the information-gathering on expenses of petroleum levy had reached Rs370 billion in the first 9 months of the current financial year versus the yearly target of Rs450bn. The actual compilation through petroleum levy has now been amended to Rs500bn as part of budget 2021-22.
Petrol & HSD are two major products that produce most of the income for the government b/c of their huge and yet rising consumer spending in the country.
