The Pakistani federal government on Wednesday 31st july 2019 increased the prices of all petroleum products for the month of August and a slight reduction in the international crude price. Unfortunately, sources confirm that the national government approved all the recommendations of the Oil and Gas Regulatory Authority (Ogra) for the upcoming month of August.
Presently, the news is out that the national government increased the price of petrol (motor spirit) by Rs5.15 per litre and Rs5.65 for High Speed Diesel (HSD). Where as, the price of kerosene was increased by Rs5.38 and Rs8.9 for Light Diesel Oil (LDO).
According to the latest news, the crude price had dropped by more than 12 per cent in the Arabian Gulf to $63 per barrel on July 30 from $72 on April 28, but the government had been gradually increasing tax rates.
The sad news is that the government increased the ex-depot rate of HSD to Rs132.47 per litre, from Rs126.82, showing an increase of about 4.45pc.
Furthermore, the government increased the ex-depot price of petrol to Rs117.83 per litre from Rs112.68 — up about 4.6pc.
Similarly, the previous depot price of LDO was fixed at Rs97.52 per litre — up more than 10pc over the previous rate of Rs88.62. The kerosene price was fixed at Rs103.84 per litre, showing an increase of about 5.5pc over the previous rate of Rs98.46.
The government now is charging 17pc general sales tax (GST) on all petroleum products. Besides the GST, the petroleum was ranging between the charges of Rs14-18 per litre and now the increased charges on petrol and HSD are Rs3-6 on kerosene and LDO.
Petrol and HSD are two major and most important products that generate most of the yield and goods because of their massive and yet growing consumption in the country.
The new prices have shockingly already taken effect since 12am on Thursday 1st August. Where as, the Ministry of Finance has yet to notify the new prices.
The pending approval hasn’t stopped petrol pump owners from raising national prices. As of Thursday morning, sadly petrol pumps were selling fuel at the new rates.