ISLAMABAD: The government of Pakistan declared a price hike in petrol and kerosene oil by Rs 10 per litre and Rs 5.78 per litre on April 16, 2023.
Speaking in a televised statement, Finance Minister Ishaq Dar explained that the federal government had no choice but to raise the prices of petroleum products due to a surge in Brent oil prices internationally in the past 15 days, as well as the depreciation of the rupee against the dollar.
The Oil and Gas Regulatory Authority (Ogra) had suggested a larger price hike, but the government opted not to pass on the full impact to the public. The prices of HSD and light diesel oil (LDO) will remain unchanged for the second half of April.
Government of Pakistan
As part of one of the International Monetary Fund’s (IMF) conditions, the government of Pakistan has imposed a petroleum levy (PL) of Rs 50 per liter on both petrol and high-speed diesel (HSD), along with zero general sales tax (GST).
This has led to a price increase of Rs 10 per litre for petrol, with the new ex-depot price being Rs 282 per litre instead of Rs 272 per litre. Additionally, kerosene oil has seen a price hike of Rs 5.78 per litre, with the new price being Rs 186.07 instead of Rs 180.29 per litre.
According to sources in the Petroleum Division, the petrol price was expected to increase by Rs 14 per litre and HSD by Rs 15 per litre for the upcoming fortnight.
According to sources, the increase in petrol price is a result of a combination of factors, including a Rs 6 per litre exchange loss adjustment of Pakistan State Oil (PSO) and a Rs 4 per litre hike due to other reasons. a rise in Brent oil prices. Meanwhile, the price of HSD remains unchanged due to full storages of refineries and a sufficient supply of Iranian diesel in the market.
PETROL PRICE IN PAKISTAN TODAY 2023
Below is a chart displaying the current prices of various commonly available petroleum products in Pakistan, including petrol, diesel, light diesel, and kerosene oil.
|Fuel Type||Fuel Price 2023||Fluctuations||Fuel Price 2023|
|Petrol||PKR 272||Increased by PKR 10||PKR 282|
|Diesel||PKR 280||No change||PKR 293|
|Kerosene Oil||PKR 180.29||Increased by PKR 6||PKR 186.07|
QUICK HISTORY OF PETROL PRICES IN GOVT PAKISTAN
The global petroleum industry was negatively impacted by the coronavirus pandemic, resulting in a significant decrease in fuel demand worldwide.
Pakistan was no exception, experiencing an 11% decrease in fuel consumption during the June-July fiscal year 2019-2020 due to strict lockdown measures and the fear of catching COVID-19. As a result, petrol prices in Pakistan dropped to their lowest levels in 10-12 years, with a record low of PKR 74.52 per litre in June 2020. Some regions also reported fuel crises due to the strict lockdown measures.
However, the situation improved in the latter half of 2020, with the number of coronavirus cases declining and the government implementing smart and sustainable lockdown policies. As a result, large-scale industries and businesses resumed operations, and by the end of June 2020, the petrol price increased by PKR 25.58 to reach PKR 100.10 per litre.
Despite this increase, petroleum prices are expected to rise further in the coming months due to the uncertain economic situation in the country and rising demand for fuel in the international market. As of now, the petrol price in Pakistan is PKR 267. It is important to stay updated with the fluctuating rates of petroleum products in the country.
The authority responsible for regulating the oil and gas sector in Pakistan and suggesting petroleum product prices is discussed in the next section of the article.
Authority Regulates The Oil Sector In Govt Pakistan
The Oil and Gas Regulatory Authority (OGRA) was established by the Government of Pakistan in 2002 to regulate the fuel industry in the country. OGRA analyzes the demand and supply of various key resources and recommends changes in fuel prices in Pakistan based on that analysis.
However, OGRA’s recommendations can only be implemented if they are approved by the Prime Minister of Pakistan; otherwise, they are rejected, and the prices remain unchanged. Negotiations between the government and OGRA are also a critical aspect of the price finalization process.