ISLAMABAD: The nation will bear an additional burden in the form of a record surge in the prices of petroleum products as the government notified with immediate effect an Rs12.03 per litre increase in the price of petrol.
According to a Finance Division notification, petrol price was increased by Rs12.03, high-speed diesel (HSD) by Rs9.53, kerosene oil by Rs10.08 and light diesel oil (LDO) by Rs9.43 for the next fortnight.
After the fresh hike, petrol will cost a historic Rs159.86 a litre, HSD Rs Rs154.15, kerosene oil Rs126.56 and LDO Rs123.97 in the open markets.
The move comes as international oil prices ended 3 percent higher over the weekend at fresh seven-year highs as escalating fears of an invasion of Ukraine by Russia, a top energy producer, added to concerns over tight global crude supplies.
Brent crude futures settled $3.03, or 3.3 percent, higher at $94.44 a barrel, while US West Texas Intermediate crude rose $3.22, or 3.6 percent, to $93.10 a barrel.
Both benchmarks touched their highest since late 2014, surpassing the highs hit on Monday, and posted their eighth consecutive week of gains on growing concerns about global supplies as demand recovers from the coronavirus pandemic.
“In the fortnightly review of Petroleum Products’ prices, the prime minister has considered the recommendation to increase the prices of petroleum products in line with a change in the international oil prices,” said the statement.
“Despite the increase in the prices of petroleum products, petroleum levy and sales tax have been kept to the minimum.”
The Finance Division also observed the prices of petroleum products are showing a drastic increase in the international market and presently are at the highest level since 2014.
“Despite the unabated increase since the beginning of the year, Prime Minister Imran Khan deferred the last review of petroleum products’ prices on January 31, 2022, and advised against the summary of OGRA,” said the statement.
The ministry further said the government had also levied zero sales tax and reduced the levy to provide “relief” to the consumers against the budget.
It said the “relief” had led the government to bear a revenue loss of around Rs35 billion fortnightly.
Previously, petrol was being sold in the country at Rs147.83 per litre, HSD at Rs144.62 and LDO at Rs114.54.
— With input from Reuters
