Tuesday Feb 15 2022

Petrol price increases in Pakistan by Rs12.03

— Reuters
— Reuters

The government on Tuesday dropped a major bombshell on the people by increasing the price of petrol by Rs12.03 per litre due to an increase in the prices of crude oil in the international market. 

“The prices of petroleum products are showing a drastic increase in the international market and presently are at the highest level since 2014. Despite the unabated increase since the beginning of the year, Prime Minister Imran Khan deferred the last review of petroleum products' prices on January 31, 2022, and advised against the summary of OGRA,” said the finance division in the latest statement.

The finance division stated that the government had also levied 0% sales tax and reduced the levy to provide “relief” to the consumers against budgeted.

The finance division said that the “relief” had led the government to bear a revenue loss of around Rs 35 billion fortnightly.

“In the fortnightly review of Petroleum Products' prices, the prime minister has considered the recommendation to increase the prices of petroleum products in line with a change in the international oil prices. Despite the increase in the prices of petroleum products, petroleum levy and sales tax have been kept to the minimum,” said the notification.

ProductExisting price w.e.f 01-02-2022New Prices w.e.f. 16-02-2022 
Increase / (-) Decrease 
MS (Petrol) 
High Speed Diesel (HSD) 
Kerosene (SKO) 
Light Diesel Oil 

The hike in petrol prices was expected as Information Minister Fawad Chaudhry had told the media that "there is no doubt that the price of petroleum products will increase further."

The minister had confirmed the hike in a press conference after the cabinet meeting.  

Finance Minister hints at hike in petroleum prices

The decision is also in line with what Finance Minister Shaukat Tarin had indicated a few days back. 

Finance Minister Shaukat Tarin had indicated an increase in petroleum prices in-country, adding that the government cannot lower petroleum product prices artificially.

During an appearance on the Geo News Programme, "Aaj Shahzaib Khanzada Kay Saath", Tarin categorically rejected the idea of reducing petroleum prices artificially.

He said that prices of petroleum products can’t be artificially reduced in the country. If the international market witnesses a hike in prices, the government will have to shift this burden onto the people.

He further hesitated to back the government’s decision to maintain unchanged petroleum prices for the first 15 days of February, saying that though this decision is popular, it is not going to sustain for a longer period.