Yesterday, the Government of Pakistan has decided to increase the prices of high speed diesel (HSD) and petrol by PKR 2/ litre and PKR 1.77/ litre respectively. Starting today, the new prices will remain effective till the end of this month. Consumers will now have to pay PKR 68.35/ litre for petrol and PKR 79.22/ litre for HSD.
This decision was announced by the Finance Minister Senator Ishaq Dar during a news conference. The recent hike in the prices of petroleum products is the second attempt of the government to switch from a monthly to a fortnightly oil prices review. Moreover, the treasury department will provide PKR 2.75 billion as subsidy on petroleum products for this time frame.
Finance Minister said that the prices of petroleum products have been increased following the Oil and Gas Regulatory Authority (OGRA) recommendations. However, the price of HSD was increased to PKR 2/ litre against the recommended increase of PKR 3.94/ litre.
Moreover, the government has decided not to increase the prices of kerosene oil and light diesel oil (LDO). Experts related to the industry believe that this decision has been taken by taking into account the fact that kerosene catered to the energy needs of poor people, especially in this cold season. Additionally, Finance Minister highlighted that oil prices have been maintained on this level since April 2016, even after an increase of approximately 43% in the oil prices across the world during the last fiscal year.
Senator Ishaq Dar said that earlier only partial increase in the prices of petroleum products have been granted for the month of December 2016, against the recommendations of OGRA.
In any case, we’ll keep a track on the changing trends of oil prices in order to keep our readers up to date.