The prices of petroleum products are likely to increase further by Rs. 9.59 per liter from tomorrow.
A source in the Ministry of Petroleum told ProPakistani that the Oil and Gas Regulatory Authority (OGRA) has prepared a summary to increase the prices of petroleum for the next fortnight that starts on 1 March amid the soaring international prices after Russia’s invasion of Ukraine.
Sources have confirmed that without raising the Petroleum Development Levy (PDL) the price of diesel and petrol is expected to increase from Rs. 4.5 to Rs. 5.5 per liter. The price of petrol may go up by Rs. 5.5 per liter whereas that of diesel per liter may go up to Rs. 4.5 per liter.
As per its commitments with the International Monetary Fund (IMF), the government has to increase the PDL at the rate of Rs. 4 per liter a month. So if it raises the PDL, the prices might shoot up to Rs. 9.50 for petrol and Rs. 8.52 per liter for diesel.
The government is charging Rs. 17.92 per liter PDL on petrol, which is Rs. 13.30 per liter on diesel. It had also had slashed the GST on petroleum products to zero.
The government had increased the prices of petroleum products by a record Rs. 12.03 per liter, and petrol’s official price is at Rs. 159.86 per liter.
The price of crude oil was $94 a barrel a day on 16 February but Russia’s invasion of Ukraine has propelled a rise in prices to exceed $100 a barrel for the first time since 2014.
If the government increases the price of petrol by Rs. 9.50 per liter then it will be Rs. 169.36 per liter. Similarly, if the price of high-speed diesel is upped by Rs. 8.52 per liter, its new price will be Rs. 162.67 per liter.
However, the final decision will be taken by the Prime Minister based on the advice of the Ministry of Finance.
