The government on Friday jacked up per litre price of high-speed diesel (HSD) and petrol by one rupee per litre, which will be effective from Saturday across Pakistan.
Federal Minister for Finance Senator Ishaq Dar made this announcement during a press conference held in Dubai. He said that new oil prices would remain effective during the month of April 2017. According to the minister, it has been decided to increase the price of petrol and diesel (HSD) by Re 1/litre only while the price of Kerosene (SKO) and Light Diesel Oil (LDO) to remain unchanged in April.
Dar said in line with the prime minister’s instructions to provide maximum relief to the common man, and keeping in view that Kerosene oil and LDO is used by the low income segments of the country’s population, it has been decided to maintain the prices of Kerosene oil and LDO at the current level till April 30, 2017.
Earlier, Ministry of Petroleum & Natural Resources and Oil and Gas Regulatory Authority (OGRA) have recommended an increase of Rs 13 per litre in the price of kerosene oil (SKO), Rs 7.75/litre in the price of Light Diesel Oil (LDO), and Rs 2 per liter in the prices of HSD and petrol. However, the government has set aside the recommendations, seeking upto Rs13 per litre hike in the prices of POL products.
Senator Dar said in order to maintain the prices of both Kerosene Oil and LDO at current levels, the government would not only be forgoing all applicable taxes and duties on these petroleum products, but would also subsidize the prices of these products for the consumers.
The government will bear revenue loss of Rs 3 billion by not passing on full impact of increase in crude price in the international market to the masses, he said. The finance minister is currently on an official visit to Dubai where he would be engaged with the International Monetary Fund (IMF) for Article-4 consultations.
On the other hand, the Oil and Gas Regulatory Authority (OGRA) has convened a meeting with the liquefied petroleum gas (LPG) producers to settle the fuel’s price at a reasonable level. The LPG pricing has been at the centre of controversy for the last few weeks, as producers have criticized prices set by the regulator, saying it did not take into account market dimensions.
They even asked the petroleum ministry to intervene to resolve the issue. The regulator had fixed the LPG price for domestic cylinder at Rs 910 against the advice of the Petroleum Ministry that had recommended Rs 1100 per 11.8 kg domestic cylinder. Since the producers did not share production data with the regulator, then it worked out the price through its own sources and data.
OGRA has again asked the producers to provide data to determine a fair price for the fuel, the source said. In Karachi, the Pakistan State Oil (PSO) has issued a statement after news of a strike called by the Oil Tankers Association which is protesting against the sales taxes imposed by provincial tax authorities across the country.
Despite the fact that the strike is not against the country’s premier oil marketing company and it has no stake in the matter, PSO’s supply chain is highly vigilant of the situation. The company is striving hard to ensure that the supply of petroleum products will continue without any hitches. PSO reiterated its commitment to maintain an uninterrupted supply of fuel to meet the country’s fuel and energy needs under all circumstances.
