Govt raises petrol, high speed diesel prices by Rs4

Published December 31, 2021
A worker at a fuel station pictured with a petrol pump. — AFP/File
A worker at a fuel station pictured with a petrol pump. — AFP/File

The government increased the prices of petrol and high speed diesel (HSD) by Rs4 per litre, according to a statement issued by the Finance Division late on Friday.

The statement said the new prices will be effective from January 1 (Saturday).

"In the fortnightly review of petroleum products prices, Prime Minister [Imran Khan] has rejected the proposal of Ogra (Oil and Gas Regulatory Authority) for an increase in prices of petroleum products and advised to increase only Rs4 per litre to meet the petroleum levy target agreed with the IMF (International Monetary Fund)," the statement read.

The Rs4 increase in the price of petrol is part of a commitment made by the government under an agreement with the IMF for a net fiscal adjustment of almost Rs550 billion during the remaining part of the current fiscal year.

Making an announcement in this regard, Finance Minister Shaukat Tarin had said during a press conference in November that a Rs4 per litre monthly hike in petroleum levy on major petroleum products would be made as part of an austerity plan for the revival of $6 billion IMF package.

The Rs4 increase announced on New Year's Eve is the first instance of the monthly raise announced by Tarin.

Following this development, the price of petrol has been increased from Rs140.82 to Rs144.82, that of HSD from Rs137.62 to Rs141.62, of kerosene from Rs109.53 to Rs113.53 and that of light diesel oil from Rs107.06 to Rs111.06, according to the Finance Division's statement.

The statement said sales tax on petrol and diesel had been adjusted downwards as compared to December 16, 2021, to keep the prices lower.

On December 15, 2021, the government had slashed the prices of petrol and high speed diesel by Rs5 per litre in an effort to provide relief to the people.

Now you can follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Road to perdition
Updated 01 Feb, 2023

Road to perdition

This is also the time of reckoning for those who sowed the seeds of a disastrous policy against militants.
Transport tragedies
01 Feb, 2023

Transport tragedies

TWO tragedies over the weekend illustrate the weak protocols governing the safety of transport in Pakistan. In fact,...
Disqualifying Jam Awais
01 Feb, 2023

Disqualifying Jam Awais

IT appears that there may be some kind of small punishment after all for PPP lawmaker Jam Awais, who was pardoned ...
Police Lines bombing
Updated 31 Jan, 2023

Police Lines bombing

Where the menace of terrorism is concerned, the government and opposition need to close ranks and put up a united front.
Oil price hike
31 Jan, 2023

Oil price hike

THE record single-day increase in petrol prices, preceded by massive currency depreciation, signifies the ...
Babar Azam’s award
31 Jan, 2023

Babar Azam’s award

BABAR Azam might not have lifted many trophies as Pakistan’s all-format captain in the last year but the star...