Petrol prices up by just Rs2/ltr against substantial hike in international market

Petrol prices in Pakistan July 2021: Despite a considerable increase in petroleum products in the international market, the government on Wednesday enhanced petrol prices by just Rs2 per liter, with effective from July 1, hence absorbing the price-hike impact by making adjustment in the sales tax and petroleum levy.

As compared to the regional markets, the prices of petrol are still lowest in Pakistan, said Finance Ministry in a statement issued here.

The government announced hike of Rs2 per liter in the prices of MS Petrol, to Rs112.69 from 110.69 while it announced increase of Rs1.44 per liter in the prices of High Speed Diesel (HSD), which now would be sold at Rs112.55 compared to Rs113.99.

Likewise, kerosene (SKO) prices were increased by Rs3.86 per liter, from Rs81.89 to Rs85.75 and Light Diesel Oil (LDO) by Rs3.72 per liter from Rs79.68 to Rs83.40.

The ministry said as compared to our regional countries, the government was providing petrol and diesel at the lowest levels rates.

As on June 28, the statement added, petrol was available at Rs110.6 per liter in Pakistan whereas it was being sold at Rs115.9 in Indonesia; Rs145.7 in Bhutan; Rs146.1 in Sri Lanka; 165.8 in Bangladesh; Rs169.1 in Nepal; Rs181.6 in China and at Rs214.1 in India

“In order to provide maximum relief to the consumers, the government has maintained the practice of keeping the prices of petroleum products at an affordable level,” the statement added.

It said the Oil and Gas Regulatory Authority (OGRA) had been recommending substantial increase in the prices of petroleum products since May 1st 2021, corresponding to the increase in prices of the petroleum products in the international market.

However, it added, keeping in view the welfare of the general public, the government had absorbed the impact of increase by making adjustments in sales tax and petroleum levy. “Currently, the petroleum levy rates are at the lowest of last six years,” it said.

According to the statement, during the financial year 2020-21, the government provided Rs252.41 billion subsidy to the consumers by keeping low the petroleum levy rates against the budgeted Rs30/liter on all products.