Overview
The recent petrol price U-Turn is shocking and totally unexpected for citizens. After a continuous increase in prices, now cheap price petrol is offered. The government has finally taken a U-Turn and reduced petrol rate even after the OGRA suggestion to increase prices. Petrol is now available at a cheap price than previous. It seems the government has no heed to the OGRA proposal.
The government has reduced the petrol price by Rs. 5. Instead of hiking petrol prices a little low is good to not pay a little higher.
New Petrol Rate
Petrol price is cut down from Rs. 272 to Rs. 267. Now you will pay Rs. 5 less than the previous rate of petrol. The diesel price remains at the rate of Rs. 280.
Officials had decided to consider petrol price change after every 15 days. If this reduction in petrol cot remains, we will have the best cheap rate of petrol in the coming months. But the results will decide the next step. The only thing we are waiting for long time is to saw cheap price petrol.
OGRA Purposed To Increase Petrol Price
Before the announcement of government regarding reducing the petrol prices. Oil and Gas Regulatory Authority (OGRA) had sent proposals to the officials to increase the prices and had also mentioned maintaining the new price for next fortnight. OGRA had purposed two suggestions in the summary sent to the Federal government.
In the proposal, they suggest 2% and 5% increases in General Sales Tax (GST) for petrol and diesel and added a 5-10% petroleum levy on diesel. According to the percentage, if authorities increase the 2% GST on petrol, the price will jump by Rs. 5.44/liter. If a 5% GST increases, then the petrol price will increase by Rs. 13.60/liter. Furthermore, an increase of Rs. 10-15/liter in diesel price has been also mentioned.
Whilst, the price of petrol reduced in the international market and currently its stands at $74/barrel. It seems the reduction in the petrol rate not considering in Pakistan right now.
Conclusion
As per the previous month’s history, this is a very little step to reduce the price by just Rs. 5. But if the government has followed the turn to reduce the prices, we will come to the lowest flirting rate. Unstable petroleum product rates impact routine work and it’s also a big part of inflation. Low rates of petrol are really needed for our economy to control inflation and to stable routine work in casual form. Cheap price petrol will help in different ways to control inflation.
