New Year Brings Increase in Oil Prices by Upto Rs. 6.79 Per Litre

While the entire world is busy with New Years’celebrations, the government of Pakistan has decided to significantly increase the prices of all petroleum products from the first month of 2018 by up to Rs. 6.79 per liter.

Prices

  • Petrol has increased by Rs. 4.06 per litre and will sell for Rs. 81.53 per litre
  • High-Speed Diesel (HSD) has increased by Rs. 3.96 and will sell for 89.91 per litre
  • Light Diesel Oil (LDO) has increased by Rs.6.25 and will sell for Rs 52.12 to Rs 58.37 per litre
  • Superior kerosene oil (SKO) has been increased by Rs 6.79 per litre, and will sell for Rs 57.58 to Rs 64.30 per litre.

The government holds the global market responsible for the increase in price and claims that it is fairly lower in Pakistan as compared to the rest of the world, especially India and Bangladesh.

Ogra’s Recommendation

Ogra recommended that the prices of petrol should increase to Rs. 4.06 per litre and HSD to Rs. 6.03 per litre.

After deregulation of HSD, the increase in Pakistan State Oil (PSO)’s weighted average ex-refinery price of HSD along with its Inland Freight Equalisation Margin (IFEM) has been worked out for the month of January.

OGRA also recommended an increase in ex-refinery price of HSD by Rs. 5.83 per litre or 11.4 percent and an increase of Rs. 0.20 per litre or 15.9 percent in the IFEM.

For super kerosene oil, OGRA asked to increase it to Rs. 13.58 per litre and LDO to Rs. 12.49 per litre.

The Government is charging 31 percent as GST on HSD, going against the standard rate of GST which is 17 percent. The rest of the petroleum products are charged at 17 percent.

A high bump in petrol prices is being termed as government’s ‘New Year present’ for the citizens of Pakistan.


  • Xahid

    ‘New Year present’ for Govt. of Pakistan not citizens,
    The N-league keep Digging own grave. it seems like they’re completely careless what people think about them.

    • Dr. Strangelove

      Govt. of Pakistan doesn’t control global oil prices.

      • Xahid

        Yeah, but they sure control the 49% Tax on oil price,
        and by the way, Crude oil price is going down

        Here is chart for your convenience..

        macrotrends_net/1369/crude-oil-price-history-chart

        • Dr. Strangelove

          As per that chart, price in June 2017 was $46.36 and in December 2017 was $60.42. Global prices went up.

          The government can’t keep prices static by reducing taxes. That would lead to huge economic deficits, which we can’t afford right now given our precarious balance of payments situation.

          • Xahid

            No, that will lead to relief the peoples from inflation, Govt. need to stabilize value of Rupees, if they depends on the Loans, they’re not actually governing the country but wasting the time.

      • Ashar Waheed

        Why do they come forward when price is decreased slightly? And on increase you say Govt of Pakistan doesnt control it. They do control it. Please talk to some owner of Petrol station owner. which i do as they are my client.

    • Ashar Waheed

      exactly right Xahid. But people here vote for one good breakfast.

  • ZAB

    It is an other nail into Nawaz’s political coffin.

  • Emraan Hashmi

    Jaa Ganjay (Nawaz Shareef) Teri Payn Nu….

    • Moon Pbc

      Like Khadim Rizvi Tere Payn di Seri

  • Sheldon Cooper

    Where’s Abdul Wahab Shareef?

  • Muhammad Faheem

    For those saying global prices have increased, that means this government hasn’t got anything to do with the cheap prices of petrol we had for the last couple of years it was just global cut down…..currency has devalued even more… Thank u pml n for doing this to this country after serving all these years