Govt jacked up petroleum products prices once again despite fall in oil prices globally

petroleum products

According to a notification issued by the Ministry of Finance, the federal government on Monday announced an increase of Rs 6.72 per litre in the price of petroleum products for the remaining days of August 2022. 

While the cost of light diesel increased by Rs 0.43 per litre, the cost of diesel decreased by Rs 0.51. The statement stated that the cost of kerosene oil had dropped to Rs 1.67 per litre. 

After the most recent increase, petrol will now cost Rs 233.91, followed by high-speed diesel at Rs 244.44 and kerosene oil at Rs 199.40, and light diesel at Rs 191.75, according to a notification from the Finance Division. 

Read more: Petrol price cut by Rs 3.05 and diesel price increased by Rs 8.95

The new prices will take effect from 16 August. 

Petroleum ProductsExisting Prices 
New Prices 
Increase/(-) Decrease 
MS (Petrol) 227.19 233.91 +6.72 
High-Speed Diesel (HSD) 244.95 244.44 -0.51 
Kerosene 201.07 199.40 -1.67 
Light Diesel Oil 191.32 191.75 +0.43 

Last month, the government increased the price of high-speed diesel (HSD) by Rs 8.95 a litre while cutting the price of petrol by Rs 3.05 per litre. 

Oil prices fall in international market 

It is important to note that the coalition government led by PM Shehbaz has declared an increase in petroleum products prices despite a decline in the price of oil globally. 

On Monday, oil prices decreased by more than $4 a barrel globally due to concerns about demand as disappointing Chinese economic data stoked fears of a world recession. 

After closing 1.5% down on Friday, Brent crude futures dropped $4.35, or 4.43%, to $93.80 a barrel by 1351 GMT. 

After falling 2.4% the previous session, U.S. West Texas Intermediate crude was down $4.23, or 4.59%, at $87.86. 

The open interest in Brent crude this month is 20% lower than it was in August of last year. 

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