News Desk |
The government is likely to increase petrol prices by Rs9 before Eid from June 1 – just days ahead of Eidul Fitr – making it the third month in a row when the prices of petroleum have gone up. Overall, the government is likely to increase the prices of petroleum products by as much as Rs12 per liter from June 1.
An English daily reported that the Oil and Gas Regulatory Authority (OGRA) is expected to forward a summary proposing new rates on May 30 and the new prices will take effect from the next month after approval by the prime minister. It is reported that the price of petrol may be increased by Rs9.50 while high-speed diesel (HSD) may go up by Rs11.5.
The minister had maintained that he had been absolutely correct in demanding those prices then because the international oil price had been in the range of $30-32 per barrel.
Similarly, the price for light diesel oil (LDO) is likely to increase by Rs7.85 and kerosene may see a rise of Rs12 per liter. The paper reported that the impact of rupee depreciation against the dollar is said to be incorporated in HSD and petrol prices, while the remaining increases would be made due to the rise in crude oil rates.
Read more: Petrol prices rise exponentially
PTI govt ‘drops petrol bomb’ ahead of Ramadan
On May 4, the Economic Coordination Committee (ECC) of the federal cabinet had approved an increase in prices of petroleum products by up to nearly 10 percent after Prime Minister Imran Khan asked the ECC to revise a proposal by OGRA suggesting to raise petrol prices by over 14 percent.
Petrol price was increased from Rs98.88 to Rs108.42 – reflecting an increase of Rs9.54 per liter or 9.6%. The price of HSD — most widely consumed petroleum fuel — was increased to Rs122.32 from the Rs117.43 per liter – an increase of 4.2 percent. The light diesel oil prices went up from Rs80.54 to Rs86.94 per liter and price of kerosene oil to Rs96.76.
The paper reported that the impact of rupee depreciation against the dollar is said to be incorporated in HSD and petrol prices.
The ECC had taken the decision in its first meeting under the chairmanship of new Adviser to the Prime Minister on Finance Dr Abdul Hafeez Shaikh. With an increase of Rs9.54 per liter in the price of petrol at a time when people were already reeling under skyrocketing inflation, the move to increase the petroleum products rates ahead of Ramadan had drawn severe criticism.
In April, OGRA had moved the summary after the price of international crude oil rose by less than 2 percent. Subsequently, the government had increased the per liter price of petrol and high-speed diesel by Rs6 to and of light speed diesel and kerosene oil by Rs3.
Read more: Down go petroleum prices
Economic reforms need at least two years: Asad Umar
As indicated by the then finance minister Asad Umar that the difficulties of citizens and the economy would continue for at least two years before the government’s economic reforms took root, the government had once again dropped petrol bomb on people just before the holy month of Ramadan.
Petrol price was increased from Rs98.88 to Rs108.42 – reflecting an increase of Rs9.54 per liter or 9.6%.
On April 1, the ex-minister had defended ORGA’s decision to increase petroleum prices by up to 6.45 percent saying the body had proposed double the price increase but that was not fully passed on to consumers.
When reminded that he used to advocate for Rs40-50 per liter price for petrol when in opposition, Umar had replied that the rates were double when the PTI came in the power. He had alleged that the Pakistan Muslim League Nawaz (PML-N) government had been playing with oil prices.
Read more: Petrol prices likely to go up to Rs113.26 per litre
The minister had maintained that he had been absolutely correct in demanding those prices then because the international oil price had been in the range of $30-32 per barrel — and that it was now more than doubled.
He said the government had passed on just half of the increase in prices proposed by the regulator. Apparently, the prices that were not increased in previous months, have now been increased.