Friday Apr 15, 2022
ISLAMABAD: The newly formed government will announce the price of petroleum products for the second fortnight of the current month starting April 16.
The government would be required to either jack up the price of petroleum products or enhance subsidies to maintain the existing price.
It would be in a critical situation and might choose not to increase prices in a bid to win over public support. However, if the current government decides to keep the prices unchanged, then it will be forced to give another hefty amount in subsidy from April 16 to 30.
The Oil and Gas Regulatory Authority (OGRA) has sent a proposal to the Finance Division to increase the price of petrol by Rs21.50 and diesel by Rs51.30 (based on existing/current petroleum levy and GST).
On February 28, former prime minister Imran Khan announced a reduction of Rs10 per litre in petrol and diesel prices and a price freeze till the announcement of the budget for 2022-23.
According to the proposal, the OGRA has suggested an increase of Rs83.50 per litre of petrol and Rs119.88 per litre of diesel (based on the federal government’s advised petroleum levy of Rs30 and 17% GST).
A final decision in this regard will be taken by the Finance Division today after consultation with Prime Minister Shehbaz Sharif.
It is worth mentioning that currently, the petrol price in Pakistan is Rs149.86 while diesel is available at Rs144.15, with zero per cent levy and GST.