The comfort provided to the people of Pakistan during the Covid-19 pandemic time period in the form of reduced petrol prices in Pakistan comes to an end.
In a press release, the Finance division stated that the Government has determined to revise the current petrol prices considering the rising trend of oil prices in the global market. The new surround from many days that government has a plan to increased petrol prices but this sudden change in prices is shocking news for consumers.
On Friday, the federal authorities hiked petrol prices by Rs.25.58 to Rs100.10 per liter for the month of July. The prices of high-speed diesel (HSD) have risen up by Rs101.46 from the previous price Rs80.15 with an increase of Rs21.31 per liter. Whereas the price of kerosene oil (SKO) increase by Rs23.50 per liter from the current price of Rs35.56 to Rs59.06 per liter. Meanwhile, the price of light diesel oil (LDO) has been hiked up by Rs17.84 to Rs55.98 per liter from the previous price of Rs38.14.
It is interesting that the Oil and Gas Regulatory Authority (Ogra) that usually proposes the new rates to the government at the end of every month, did not move the summary. But this time the prices have been increased by the Government on the recommendations of Petroleum Division.
Prime minister Imran Khan’s has reduced local prices as much as Rs42.10 per liter four times since the month of March. It was able to do so after there was a dramatic crash in the international prices of crude oil. Now that the prices have been doubled since the current collapse, Pakistan has increased prices in line with it. The increment in prices includes the doubling of tax imposed with the petrol selling with a petroleum charge of Rs30 per liter, as in opposition to Rs15 per liter. Petrol prices in Pakistan increased and decreased when the international market change the rates. the decrease of petrol prices in Pakistan is a great incentive for people.
Petrol and HSD are considered to be the two main merchandise that generates the most income for the government of Pakistan. This is due to their massive and growing utilization in the country. The average monthly consumption of diesel is around 600,000 tonnes. Whereas, the average petrol income is touching 700,000 tonnes per month. However, the diesel utilization has dropped after the lockdown although picked up owing to wheat harvest. The income of kerosene oil and LDO are usually much less than 11,000 and 2000 tonnes per month. PSO has faced huge losses due to the increased petrol supply in the month of June. However, they would be able to make billions of rupees due to the rapid increase in petroleum prices.