Petrol price up by Rs5/litre.
The government on Wednesday increased the price of petrol by Rs5 and high speed diesel (HSD) by Rs, 13 per litre.
New Price of Petrol:
The new prices will be effective from March 16 (today).
“In the last fortnight, Platts Singapore prices registered an increase. This along with a depreciation of Pak Rupee has resulted in an increase of POL products in Pakistan,” the finance ministry said a statement.
According to the ministry, petrol will now be available at Rs, 272 per litre, as compared to its previous price of Rs, 267 per litre. Likewise, the government enhanced HSD price by Rs, 13, from a previous Rs, 280 per litre to Rs, 293 per litre now.
The government has reduced its dues on kerosene oil to limit its price increase to Rs, 2.56 per litre. The new price of kerosene oil will be Rs, 190.29 per litre, compared to its previous price of Rs, 187.73 per litre.
The government has maintained the price of Light Diesel Oil (LDO) at Rs, 184.68 per litre by adjusting its own dues. There has been no increase in the price of LDO.
The free fall of the rupee against the dollar has hit oil consumers again. The local currency had witnessed depreciation by Rs, 15.97 from Rs, 262.14 to Rs, 278.97 to a dollar during the first fortnight of March, setting stage for a hike in prices of petroleum products.
The government is currently charging Rs, 50 per litre petroleum levy on petrol and HOBC (High Output Ballast Cleaner). Petrol is used in cars and bikes. Its price has already gone up to a record level.
The common man and farmers who use the fuel in tractors will be majorly impacted by the increase in the price of HSD, which is widely used in agriculture and transport sectors.
Meanwhile, People in remote areas of Pakistan use kerosene oil for cooking purposes where LPG is not available. Pakistan Army is also key consumer of the fuel in the northern parts of the country.
The Oil Companies Advisory Council (OCAC) has strongly protested against the artificial control on oil prices by the government which put additional burden on the industry because of the failure of recovering exchange losses.
It has already requested the government to recover losses in the oil sector’s exchange rate through the inland freight equalisation margin (IFEM) in order to save the industry.
Comprising OMCs and refineries, the OCAC had warned that the sudden depreciation of the rupee against the dollar had created a dire situation.
The industry has been requesting the energy and finance ministries to develop a mechanism for the recovery of all exchange rate losses.
The OCAC (Oil Companies Advisory Council ) had asked for an immediate establishment of a holistic mechanism to offset losses through the Inland Freight Equalization Margin (IFEM).
It had also warned that the industry was on the verge of collapse and requested the government to take immediate action to ensure uninterrupted supply of petroleum products across the country.
Published on Logical Baat, March 16, 2023.