ISLAMABAD:
The government bypassed standard pricing formulas to impose heavy charges and premiums on consumers as it further hiked the prices of petrol and high-speed diesel (HSD) by Rs27 on Friday.
According to sources within the Oil and Gas Regulatory Authority (Ogra), petrol prices were not slated for an increase under the standard price formula.
However, the government imposed a massive oil tax of Rs26.77 per liter on petrol. With this latest addition of approximately Rs 27, the total tax on petrol increased from Rs80 to Rs107 per litre.
Similarly, HSD consumers were deprived of potential relief. According to the text of the official announcement, diesel prices were to be lowered.
Instead, the government made it Rs 26.77 per liter more expensive. Sources said that this specific increase in diesel price was implemented to facilitate premium payments to Pakistan State Oil (PSO).
This sudden and unexpected move sent shock waves through the industry.
According to sources, the government’s decision came as a complete surprise to the oil marketing companies (OMCs), who expressed surprise at the unexpected price hikes.
Prime Minister Shehbaz Sharif on Friday raised the prices of both HSD and petrol by Rs27 per liter despite the fact that there was no need for a hike in petrol prices and to push up the price, the prime minister imposed almost Rs27 per liter more tax on fuel.
The HSD price was fixed at Rs 380.2 per litre, up from Rs 353.42 per litre. This was an increase of 7.5 per cent. Diesel prices were still significantly lower than their peak of Rs 520.4 on April 10. HSD is considered to be the most inflationary fuel due to its widespread use in the transport and agriculture sectors.
The Prime Minister approved raising petrol prices to Rs 393.4 per litre, up from Rs 366.6. This shows an increase of 7.3% compared to the existing prices. Petroleum Division officials said there was no change in petrol prices in the international market and the rates had to be hiked due to an increase in duty.
The government, meanwhile, provided historic relief to consumers of petroleum oil by cutting the fuel price by Rs63.60 per litre.
After this major reduction, the new price of kerosene oil has been fixed at Rs 365.21. per litres. This marks the second consecutive week of significant relief for kerosene users, after a price reduction of Rs 21.34. per liters announced last week.
