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ISLAMABAD: The government early on Friday morning increased up the prices of petrol and diesel by more than Rs8 per litre.
According to a notification issued by the Finance Division, the price of petrol has been increased by Rs8.03 to Rs145.82 per litre while high-speed diesel has been hiked by Rs8.14 to Rs142.62 per litre.
The price of light diesel has increased by Rs5.72 per litre and will now cost Rs114.07/litre, kerosene oil has been increased by Rs6.27 to Rs116.53 per litre. The increase will go into effect on November 5, read the notification.
“On November 1, 2021, the Prime Minister had not agreed with the proposals worked out by OGRA and Finance Division and directed to maintain the prices as notified on 16 October 2021,” reads the notification.
“It is pertinent to mention that maintaining the 16 October 2021 petroleum prices had some underlying concerns for e.g. cash flow issues due to the short recovery of the cost. It is important to note that in the previous petroleum prices, already a significant relief was provided to the consumers.”
The government “has absorbed the bulk of pressure after making adjustments in the Sales Tax and Petroleum Levy,” it stated further, adding that otherwise, the prices would have been far higher than the present rates.
It said that the government is “cognizant of its responsibility to provide maximum relief to the consumers. This has dented the Petroleum Levy budget of Rs.152.5 billion during July-September, 2021 as compared to Rs20 billion realized only.”
The Finance Division said the prices of petroleum products have been increased “partially as compared to the prices being worked out by OGRA.” “If the Government had accepted OGRA’s recommendation, the new prices would have been much higher,” it added.
“Maintaining the 16 October 2021 petroleum prices had some underlying concerns for example cash flow issues due to the short recovery of the cost,” said the ministry. In the previously notified petroleum prices, the government had already provided significant relief to the consumers, according to the notification.
