Petrol price touches record high, crosses Rs118 per litre

| Diesel price jacked up by Rs2.54 per litre, | Kerosene Oil by Rs1.39, Light Diesel Oil by Rs1.27 | PPP rejects hike in petroleum price

ISLAMABAD  –   The price of petrol reached Rs118.09 per liter on Thursday, touching the highest level in the country’s history after the government increased its price by Rs 5.40 per litre for on July 15.

The government increased the prices of almost all the petroleum products and jacked up High Speed Diesel by Rs 2.54 per litre, Kerosene Oil (SKO) by Rs 1.39 per litre and Light Diesel Oil by Rs 1.27 per liter. 

Although the international oil prices have been on rise, the Government took the decision not to pass on the entire burden of increase to the consumers, the statement issued by Finance Division said. 

The rates of sales tax and petroleum levy have been adjusted in a manner that maximum relief is provided to the consumers, said finance division, the statement added.

The government has been providing maximum relief to the consumers by reducing the prices of the petroleum products since April 2021, the finance division maintained. It is pertinent to mention that OGRA had recommended Rs.11.50 per liter increase in the price of MS Petrol, the Prime Minister however considering providing maximum relief to the public has allowed only Rs 5.40 per liter (absorbing Rs.6.10 per liter) increase, the statement added.

Minister for Information and Broadcasting Chaudhry Fawad Hussain Thursday said that country’s petrol prices were currently lowest in comparison to other regional countries. In a tweet, he said that the government had left no option but to enhance the price due to persistent increase in the global market.

Sharing comparison of petrol prices of regional countries in Pakistan rupee (PKR), he said Pakistan had Rs 118 per litre, Bhutan Rs 146, Sri Lanka Rs 147, Bangladesh Rs 167, Nepal Rs 172, China Rs 189 and India Rs 220.

After the increase of Rs 5.40 per liter the price of petrol will go up from the existing Rs 112.69 per liter to Rs 118.09 per litre, which is the highest rate of Petrol in the country’s history. Earlier in August 2019 the price of Petrol had reached to Rs 117.83 per litre which was the highest record in the country’s history.

After the hike High Speed Diesel will be go up from the current Rs 113.99 per liter to Rs 116.53 per liter. The price of Kerosene will go up from Rs 85.75 per liter to Rs 87.14 per liter and LDO will go up from the existing Rs 83.40 per liter to Rs 84.67 per liter.

For the first fortnightly of July also the government had increased the prices of Petrol by Rs 2 per liter and High Speed Diesel by Rs 1.44 per liter. The government had also increased the prices of Kerosene Oil by Rs 3.86 per liter and Light Diesel Oil by Rs 3.72 per liter.

It is worth to mention here that the government had also projected to increase petroleum levy collection to Rs610bn in 2021-22 which is 35 percent higher than the current Rs450bn. In other it means that the government has to collect more than Rs 50 billion per month from the Petroleum Levy to meet the collection target of the 2021-22. Petroleum products are a significant contributor to taxes, however from the last couple of months the government had considerably decreased the Petroleum Levy on various products. Similarly General Sales Tax (GST) had also been slashed on Petrol.

Currently, the petroleum levy rates are at the lowest of last six years as the government is collecting Rs1.90 per liter PL on HSD while there is no PL on Petrol. Similarly against the standard rate of 17 percent GST currently the government is charging Rs 10.70 percent GST on Petrol and 17 percent on High Speed Diesel (HSD). The new prices will be effective from July 16th till August 1st.

 Pakistan People’s Party yesterday rejected the hike in petroleum prices and demanded of the government to immediately withdraw the notification in this regard.

PPP Secretary General Nayyar Bokhari said the hike in petroleum price was designed to crush the common man.

“PPP rejects hike in prices of petroleum products. Further increase in petroleum products should be withdrawn.  An increase of Rs 5.40 per litre in petrol prices is an injustice,” he said.

Bokhari said the representative government of the “financial mafia” had given relief to the elite and further inconvenienced the people.

“People are looking for (Prime Minister) Imran Khan who used to say when there is inflation, the rulers are corrupt. By raising the price of petrol, the rulers have dropped petrol bombs on the people,” he added.

The PPP leader said the continuous rise in the prices of petroleum products will lead to a severe storm of inflation

“The PTI is the supporter of the elite government.  The actions of the rulers have made the lives of the citizens miserable,” he remarked.

Earlier, the government approved an increase of Rs5.40 per litre in the price of petrol.

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