National

Petrol to touch Rs108 after ECC okays hike

May 3, 2019

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ISLAMABAD: The Economic Coordination Committee (ECC) on Friday approved the hike in petroleum products days after Prime Minister Imran Khan decided to send the summary to the top financial body.

The decision, however, will be implemented after the approval of the premier.

On Monday, the Oil and Gas Regulatory Authority (OGRA) recommended a hike of Rs14.37 per litre in the price of petrol from May 1.

The decision was postponed by the federal cabinet after OGRA proposed a 14 per cent increase in oil prices, following fluctuation in global oil prices.

According to reports, after an increase of Rs9, petrol will be sold at Rs108.42 per litre. Similarly, the rate of high-speed diesel was increased by Rs4.89. It will now be available at Rs122.32 per litre.

In a meeting of the cabinet on Tuesday, the prime minister disagreed with the proposal and was of the view that burden of internationally increased prices of oil should not be transferred to the people.

According to OGRA, the oil prices had gone up in the international markets due to the new sanctions imposed by US President Donald Trump on Iran. “OGRA was of the view that either the government has to bear losses or the effect of internationally increased prices of oil be transferred to the consumers,” she had added.

“Considering the agony of the people, the prime minister has not allowed the 14 per cent proposed increase in oil prices and referred the issue to the ECC which is meeting on May 2,” she had said.

She had also said that the government plans to conduct a full audit of the Rs1,300 billion circular debt that the Pakistan Tehreek-e-Insaf government has inherited from the outgoing government. “We want to bring facts before the people. Former rulers have left Rs100 billion debt only in Punjab,” she added.