ISLAMABAD: The federal government on Saturday announced a Rs3.01 increase in the price of petrol owing to the rising petroleum prices in the international market.
According to a notification issued by the Finance Division, besides petrol, an increase in other petroleum products will also be enforced starting January 16 (Sunday).
— Ministry of Finance (@FinMinistryPak) January 15, 2022
The price of petrol has been increased by Rs3.01, from Rs144.82 to Rs147.83, the price of high speed diesel (HSD) has been raised by Rs3, from Rs141.62 to Rs144.62, the price of kerosene has been jacked up by Rs3, from Rs113.48 to Rs116.48, and the price of light diesel oil (LDO) has been increased by Rs3.33, from Rs111.21 to Rs114.54.
The Finance Division, in its notification, reasoned that “petroleum products are showing [a] fourth straight weekly gain and witnessed an increased of 6.2 per cent last week in the international market.”
It said the price of petroleum products in the international market was “presently at the highest level since last year”. Meanwhile, it added, the existing sale tax rate and petroleum levies on various products were “much below the budgeted targets”.
The notification mentioned that the Oil and Gas Regulatory Authority had, therefore, recommended an increase of Rs5.52 per litre in the price of petrol and of Rs6.19 per litre in the price of HSD.
However, it stated, “Prime Minister Imran Khan has directed to absorb the impact of international prices through a further cut in the sales tax from last fortnight.”
“Therefore, the government has decided to make a partial increase in petroleum products’ prices in order to provide relief to end consumers,” it concluded.
In recent months, the government has been increasing petroleum levy and general sales tax (GST) on an alternate fortnight basis as part of its negotiations with the IMF. The levy would keep going up by Rs4 on the first of every month until it reached a maximum of Rs30 per litre and GST adjustments would take place on the 15th of every month depending on the price cushion.
