The government on Wednesday increased the prices of petrol and high speed diesel (HSD) by Rs5 and Rs13 per litre, respectively.
“In the last fortnight, Platts Singapore prices registered an increase. This along with a depreciation of Pak rupee has resulted in an increase of POL (petroleum, oil and lubricant) products in Pakistan,” a press release issued by the Finance Division said.
It said that as a result, the price of petrol and diesel had been increased by Rs5 and Rs13, respectively.
The press release added that the increase in the price of kerosene had been kept at Rs2.56 “by reducing government dues on it”. “[The] price of light diesel oil (LDO) has been kept constant by adjusting government dues as well,” the press release added.
After the latest revision, the price of petrol has risen to Rs272 per litre while the price of HSD is Rs293 per litre. The cost of kerosene has jumped to Rs190.29 per litre while LDO remains Rs184.68 per litre.
The new prices will be effective from March 16 (Thursday).
On February 28, Finance Minister Ishaq Dar had announced a reduction in the price of petrol by Rs5 per litre while keeping the price of HSD unchanged at Rs280 per litre.
Earlier this month, it emerged that the country’s oil industry was reportedly facing trouble in arranging crude oil and petroleum products owing to foreign exchange constraints and prevailing product pricing, particularly following the recent currency depreciation and increase in the central bank’s policy rate.
Reporting these challenges to the government, the Oil Companies Advisory Council (OCAC) – an association of more than three dozen major oil marketing companies (OMCs) and refineries – warned of a major disruption to the already fragile supply chain.
In a communication to the ministers for finance and energy, the governor of the State Bank of Pakistan (SBP) and the chairman of the Oil and Gas Regulatory Authority (Ogra), the association has sought an urgent engagement to address the “severe impact of the recent depreciation of the rupee”.
The oil industry also called upon the government to ensure that the banking sector enhanced limits for oil companies and refineries, enabling them to manage the impact of increased oil prices and rupee depreciation that was critical for the survival of the sector and the integrity of the POL supply chain.
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