Govt forced to take step due to devaluation of rupee: Dar
Federal Minister for Finance and Revenue, Senator Muhammad Ishaq Dar on Sunday announced that the prices of ‘Petrol and High-Speed Diesel (HSD)’ have been increased by Rs. 35 per liter in the country.
Similarly, the prices of kerosene oil and light diesel have been increased by Rs 18 per litre and these prices will be implemented from today at 11 am on January 29.
Federal Minister for Finance and Revenue, Muhammad Ishaq Dar said this while announcing the new Petroleum Prices on Pakistan Television News.
He said that rumours were circulating on social media and other media for the past few hours that an increase of 80 rupees per liter is expected in the price of petrol, which were not true.
The Minister said that due to these rumours, an artificial shortage of petrol was created in the market. And thus, keeping in mind the anxiety in the market, the announcement of petroleum prices on the instructions of OGRA was necessary. He said that the government had to take these measures due to the devaluation of the rupee and the 11 percent increase in oil prices in the international market.
The minister said that currently there is plenty of petrol in the country and due to these rumours , efforts are being made to create an artificial shortage of petrol.
Ishaq Dar said that this initiative of the government will end the artificial scarcity of petroleum in the country.
He said that from today the new price of petrol in the country will be Rs 249.80, high-speed diesel Rs 262.80, kerosene Rs 187 and light diesel Rs 189.83 per liter.
He said that the government did not increase the price of oil in the last 4 months despite the fluctuations in the oil prices in the world market.
Ishaq Dar said that in the last 4 months, our government has reduced the prices of petrol and high-speed diesel by Rs 20 rupees and the price of kerosene oil and light-speed diesel by Rs 30 rupees.
Meanwhile the federal government has raised the Petroleum Development Levy (PDL) on high-speed diesel (HSD) by Rs7.50 per litre.
The PL on high-speed diesel has been jacked up from 32.50 rupees per litre to 40 rupees per litre effective from January 29.
A source in the petroleum division said that govt is currently collecting Rs5.14 as OMC’s margin on per litre price of HSD and Rs 7 per
litre as dealers’ margin. The sales tax on diesel is currently 0%. The actual price of diesel excluding PDL and margins is Rs221.36 per litre, they say.
Similarly, the Petroleum Development Levy (PDL) on petrol is set at Rs50 per litre, while inland freight equalisation margin (IFEM) has been fixed at Rs9.33 per litre.
The government is collecting Rs6 as OMC’s margin on per litre price of petrol, sources say. The actual rate of petrol excluding PDL and other margins is Rs177.47 per litre, they added.
Govt jacks up fuel prices Finance Minister Ishaq Dar on Sunday announced that the federal government has decided to raise the prices of petrol and diesel by Rs35 per litre, which will be applicable from 11am today.
In a televised address, Ishaq Dar said that 11 per cent increase was witnessed in the prices of petrol products in the international market.
Dar further announced that the prices of kerosene oil and light diesel oil have been increased by Rs18 per litre.