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.