The governing authorities have decided to simplify things after consecutive increases in gasoline prices exacerbated the current financial instability and shattered the incumbent government. The government took a step a few weeks ago when it decided to deregulate the prices of petroleum products under the newly suggested method. The Oil and Gas Regulatory Authority (OGRA) and Oil Marketing Companies (OMCs) recently met, and as a result, rumors indicate that Pakistani gasoline prices would likely be deregulated beginning on November 1, 2022. On other hand, the proposed deregulation of petroleum product prices has been rejected by petroleum dealers, who claim that the Oil and Gas Regulatory Authority (OGRA) has not contacted them on the matter thus far.
Pakistan Petroleum Dealers Association (PPDA) Statement:
The dealers during a Pakistan Petroleum Dealers Association (PPDA) ceremony held in Islamabad on Saturdays rejected the decision saying that the oil and gas regulator did not even bother to consult them on the matter. The Pakistan Petroleum Dealers Association (PPDA) rejected the policy. Additionally, they stated that if OGRA did not consult them before making a final decision, they would embark on a nationwide strike.
New Hike Expected:
It is important to note that the current suggested deregulation approach would not provide the general public with any relief. The inflation-stricken salaried class will experience a new jump in gasoline costs due to a 17% increase in sales tax and a further increase in the fuel charge to Rs. 50.
In the meeting, former prime minister Shahid Khaqqan Abbasi claimed that the government is prepared to deregulate petroleum product pricing because, when oil prices rise on the world market, the government is forced to raise prices, and the general public is left to shoulder the cost of the increase.
Current Prices of Petroleum Products:
The price of petrol in Pakistan has increased by Rs. 2.07, bringing the price from Rs. 233.91 to Rs. 235.98. High-speed diesel (HSD) will now cost Rs. 247.43 instead of Rs. 244.44 due to a 2.09 rupee increase in pricing. Additionally, the price of kerosene oil increased by Rs. 10.92, moving from Rs. 199.40 to Rs. 210.32. Last but not least, the price of light diesel oil (LDO) increased by Rs. 9.79, going from Rs. 191.75 to Rs. 201.54.
