Citing the recent fluctuation in the global prices of oil and the exchange rate, the Government of Pakistan has announced a massive increase in the prices of petroleum products. Several news reports suggest that the current price hike is beyond the amount recommended by the Oil and Gas Regulatory Authority (OGRA).
Starting from September 16, 2021, the following will be the new prices of petroleum products:
|Products||Old Price (PKR)||Revised Price (PKR)||Price Increase (PKR)|
|High-Speed Diesel (HSD)||115.03||120.040||5.01|
At the beginning of this month, the government had announced a noticeable reduction in the prices of petroleum products, despite OGRA’s recommendation to increase the prices of fuel.
This time, though, the government has decided to overshoot OGRA’s recommendation by Rs. 4 per liter as it has been reported that the authority only suggested an increase in the prices of petroleum products by just Rs. 1 per liter.
Upon the previous price review, the government stated that it had kept the prices of petroleum products relatively low for the people of Pakistan “despite international price fluctuations in petroleum products and anticipated increase in future prices.” Given the government’s previous stance, the current increase in the prices of fuel is likely to catch everyone by surprise.