The federal government has increased the prices of petrol and high speed diesel by Rs3 per litre.

The prices of other petroleum products have also been increased.

The Finance Division issued a notification on Saturday night. The new prices take effect from Sunday, January 16.

Petrol price has been increased by Rs3.01 to Rs147.83 and high speed diesel by Rs3 to 144.62 per litre.

The price of kerosene oil has also gone up by Rs3 per litre and now it would be sold at 116.48 per litre.

The light diesel oil has been jacked up by Rs3.33 to Rs114.54 per litre.

The government revises petroleum prices every fortnight.

The price hike comes days after the government proposed to increase the ex-refinery prices of petroleum products.

The government estimated that the ex-refinery price of petrol would be jacked up by Rs5.27 per litre to Rs116.13, diesel by Rs5.79 per litre to Rs112.86 and kerosene oil by Rs5.82 to Rs99.43. 

The ex-refinery price of light diesel was estimated to increase by Rs6.37. The new prices have been estimated in view of the international market where crude oil prices have increased to over $80 per barrel

A finance division statement claimed that the Oil and Gas Regulatory Authority (Ogra) had recommended a price hike of Rs5.52 for petrol and Rs6.19 for high speed diesel, but the government has absorbed the impact of the international price increase by reducing the sales tax.

The statement said that the finance ministry will take an Rs2.6 billion “revenue hit due to the reduced sales tax.”

The statement also noted that existing sales tax and petroleum levy on various petroleum products are much below the budgeted target.

Under a deal with the International Monetary Fund (IMF) the government has promised to raise Rs350 billion in petroleum levy from consumers.

Finance Ministery spokesperson Muzzammil Aslam has said that the international market had registered a 10% hike in oil prices but the government allowed only a 2% prices increase.



source https://www.samaa.tv/news/2022/01/government-increases-petrol-diesel-prices-by-rs3/