Petrol prices rose once again

Sunday, January 1st, 2012 10:11:04 by

Crisis-stricken people of Pakistan greeted the New Year with another rise in the petrol prices from Oil and Gas Regulatory Authority (OGRA) on Sunday morning. Price of petrol has been increased by Rs1.65 to Rs89.54 per litre and that of high octane blending
component (HOBC) by Rs5.13 to Rs111.91 per litre for January 2012.

Despite of a constant decline in the oil prices in the international market, the government of Pakistan has kept its norms of not transferring the relief to the public and has decided a further raise in the prices of fuel. It has been reported that OGRA
suggested the Ministry of Petroleum to maintain the prices of petrol and diesel to their current level but the ministry has decided to go the other way, increasing petrol by Rs. 1.65 per litre and diesel by Rs. 1 per litre for this month.

However, the ministry withdrew its decision late in the night and asked OGRA to keep the diesel price unchanged at Rs98.82 per litre, but did not revise its decision on petrol. Rates for kerosene will remain unchanged at Rs89.24 per litre and for light diesel
oil (LDO) at Rs86.78 per litre.

The reason behind this raise in prices by the petroleum ministry was revealed by one of the official, citing that the increase has been incorporated due to fall in the value of Pak Rupee against the American Dollar in the month of December. The price of
petrol was raised to offset the recent increase in CNG prices, he added. The government collects Rs10 per litre as petroleum levy on petrol, Rs4.82 on kerosene, Rs6.04 on HSD and Rs2.72 on LDO.

“This computation is made by the finance ministry because matters relating to tax collection are dealt with by the Federal Board of Revenue, which is under the finance ministry,” he said.

With the country trapped in a state of hyper inflation, this raise in the petrol prices will be certainly not welcomed by the public, it will have direct consequences over the fares charged by local transport vehicles. 

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