The new year brought bad news for fuel consumers as fuel prices have received price hikes twice in the past two months. Government reviews and updates prices every month based on Oil and Gas Authority’s (OGRA) recommendations.
Just like previous months, OGRA has once again proposed to increase the prices of several petroleum products. OGRA’s proposal will be reviewed by the government and decision will be made at the start of next month.
OGRA has proposed the following increase in petroleum product prices:
- Increase of Rs 1.00 in Light Diesel’s price. Current price is Rs 64.30 per liter.
- Increase of Rs 3.56 in petrol’s price. Current price is Rs 84.51 per liter.
- Increase of Rs 6.28 in Kerosene Oil’s price. Current price is Rs 70.26 per liter.
- Increase of Rs 6.94 in High-Speed Diesel’s (HSD) price. Current price is Rs 95.83 per liter.
If OGRA’s proposal gets approved by the government, updated prices for the month of March will be as follows;
- Petrol: Rs 88.07 per liter
- High-Speed Diesel: Rs 102.77 per liter
- Light Diesel: Rs 65.30 per liter
- Kerosene Oil: Rs 76.54 per liter
The main reason behind this surge in prices is that most of the revenue comes from petroleum products through taxes. By increasing prices, the government wants to amass as much tax revenue as possible. Currently, government charges the following tax rates on per liter price of petroleum products;
- Rs 8 petroleum levy on HSD,
- Rs 10 on petrol,
- Rs 6 on kerosene oil and
- Rs 3 levy on Light Diesel Oil.
A price hike is never welcomed by consumers. Faisalabad, Lahore and Islamabad Chambers of Commerce claimed that this price hike is bad for the economy and puts an excessive burden on the public.