ISLAMABAD – The Federal government on Friday increased the prices of Petrol and HSD by Rs3.20 and Rs2.95 per litre respectively for the remaining two weeks of January, 2021.
According a notification of Finance Division the prices of all the petroleum products have been increased for the remaining month of January. The price of petrol increased by Rs 3.20 per litre, High Speed Diesel (HSD) price by Rs 2.95 per litre, kerosene oil (SKO) by Rs 3 per litre and Light Diesel Oil (LDO) by Rs 4.42 per litre, said the notification.
After the increase of Rs. 3.20 per liter the new rate of Petrol will be Rs. 109.20 per liter, while HSD price has been hiked by Rs. 2.95 per liter bringing the new rate to Rs. 113.19 per liter. Prices of Kerosene oil and LDO have been increased by Rs. 3 per liter and Rs.4.42 per liter respectively bringing new rates to Rs. 76.65 per litre and Rs. 76.23 per litre.
The government claimed that it did not pass on full impact of oil prices internationally and exchange rate on the general public as recommended by Oil and Gas Regulatory Authority (OGRA).
An official source told The Nation that following the directives of the government Oil and Gas Regulatory Authority had calculated the oil prices on the basis of Rs 30 per litre Petroleum levy instead of the existing Rs 22.85 per litre on Petrol and Rs 24.38 per litre on HSD. The regulator had proposed Rs 13.07 per litre increase in petrol price which include Rs7.15 inflated Petroleum Levy. Similarly Rs 11.03 increase was proposed in the price of HSD which included Rs 5.62 per litre inflated Petroleum Levy. Ogra had proposed an increase of Rs 10.55 per litre in SKO and Rs 15.33 per litre in LDO price.
In case Ogra would have recommended the prices of Petrol and HSD on the basis of the existing PL the impact on the Petrol price would be Rs 4.71 per litre and on HSD it would have an impact of Rs 4.40 per litre, the source said. Ogra is providing political edge to the government by calculating the petroleum product prices on the basis of inflated Petroleum Levy instead of existing PL, the source claimed. The government is claiming to absorb a lot of increase recommended by Ogra, but in actual the government has absorbed Rs 1.29 per litre increase by decreasing the petroleum levy. Petroleum Levy on Petrol has been decreased by Rs 1.29 from the existing Rs 22.85 to Rs 21.56 per litre and HSD from the existing 24.38 to Rs 23.19 per litre. Since the government also charging 17 percent GST on PL therefore another Rs 0.21 per litre applying to Rs 1.29 PL also not passed on to the consumers.
The new prices will be effective from January 16.