(Yesterday BizUpdates covered possible price hike scenarios coming from OGRA)
The government of Pakistan announced its plan to increase the price of petrol and diesel for the month of December, but kept the price of kerosene oil and light diesel oil (LDO) unchanged
“Prices of petroleum products were not increased in the last seven months and federal government has again decided not increase the prices of kerosene oil and light diesel,” Ishaq Dar told the reporters
Subsequently, the new prices of petroleum products were announced by the Finance Minister Ishaq Dar during the press conference on Wednesday. It is worth noting that Mr. Dar said the government has decided to bear loses of PKR 4 billion because of the provision of relief to the citizens on price of petroleum products.
Addressing a press conference, the finance minister said: “In order to maintain stability, oil prices have been maintained at the current level since April 2016 despite fluctuations in the international market, and the government was absorbing the financial cost as the impact of increase in POL prices was not passed on to end consumers.”
As per the government’s announcement the price of petroleum products are as below:
- The price of petrol increased by PKR 2/ liter to PKR 68.28
- High speed diesel (HSD) increased by PKR 2.70 per liter to PKR 75.22
The price of Kerosene oil, which is also used for cooking purpose in the remote area, remained at the current level during December, but speculations suggest that the price of Kerosene might hike in 2017.