The Pakistan authorities are considering increasing the prices of petrol and diesel from February 16th due to fluctuations in global oil prices.
According to the reports, there is a possibility of increasing the price of high-speed diesel by Rs. 8 per liter from February 16th. The current price of diesel is Rs. 278.96 per liter. If approved, the new price will be Rs. 286.97 per liter. Additionally, petrol prices may see a smaller increase of 80 paise per liter.
The prices of petroleum products in Pakistan are reviewed and notified on a fortnightly basis by the Oil and Gas Regulatory Authority (OGRA) in accordance with changes in global oil rates and currency movements. For this next fortnightly period starting February 16th, OGRA has based its calculations on the current petroleum levy and general sales tax rates. However, it has not officially notified the new rates yet.
The possible hike in diesel prices will likely impact the transportation and agriculture sectors negatively and lead to rising inflation. Diesel is widely used in vehicles, farms, and industries. Pakistan State Oil (PSO) had already imposed a premium of $9.43 per barrel on petrol and $6.50 per barrel on diesel in the last 15 days.
The authorities are also considering maintaining furnace oil prices at the existing Rs. 186.62 per liter and increasing light diesel oil (LDO) by Rs. 2.50 to Rs. 169.62 per liter. LDO is primarily used in industries. Any increase in fuel prices will affect consumers and businesses adversely in the current high inflation scenario. The public will be closely watching the government's decision on petroleum rates for February 16th.
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