Just a few days before the Edi-ul-Azha, the government has dropped an ‘oil bomb’ on the masses by approving an increase of Rs5.40 per litre in the price of petrol.
Special Assistant to Prime Minister on Political Communication Shahbaz Gill on Thursday said the federal government has approved an increase in the price of petrol by Rs5.40 per litre.
The special assistant, in a series of tweets, said: “Prime Minister Imran Khan went against the Oil and Gas Regulatory Authority’s (OGRA) recommendation and approved Rs5.40 increase in petrol price keeping in mind public interest.”
The price of high speed diesel has been hiked by Rs2.54 per litre, kerosene oil by Rs1.39 per litre, and light diesel oil by Rs1.27, the special assistant said in his thread of tweets.
The new price of petrol after the aforementioned increase will be Rs118.09, while high speed diesel will be available at Rs116.53. The price of kerosene has been set at Rs87.14 per litre and LDO will be available at Rs84.67 per litre.
Gill said that the government would now bear the burden as it has decided against OGRA’s recommendations in a bid to provide “maximum relief to the people”. The OGRA had recommended an increase of Rs11.40 per litre in petrol price, he further said.
Earlier on Wednesday, the OGRA recommended the government to increase the price of petrol by Rs11.50 per litre and high speed diesel by Rs2.40 per litre for the 2nd half of July.
For the first fortnight of July also the Oil and Gas Regulatory Authority (OGRA) had recommended the government to increase the price of petrol by Rs6.05 per litre and high speed diesel by Rs3.44 per litre. However, the government had increased the prices of petrol by Rs2 per litre and high speed diesel by Rs1.44 per litre. The government had also increased the prices of kerosene oil by Rs3.86 per litre and light diesel oil by Rs3.72 per litre.
It is worth mentioning here that the government had also projected to increase petroleum levy collection to Rs610 billion in 2021-22 which is 35 percent higher than the Rs450 billion target set for the last fiscal year 2020-21. Petroleum products are a significant contributor to taxes as the government is currently charging double tax. It is charging a petroleum levy and General Sales Tax, resulting in higher prices in Pakistan. The upward trend in crude oil prices in the international market also continues as Brent crude is hovering above $74 per barrel.
Currently, the petroleum levy rates are at the lowest of the last six years. During the financial year 2020-21, the government has provided Rs252.41 billion subsidy to the consumers by keeping low the petroleum levy rates against the budgeted Rs30/litre on all products.
