The Oil and Gas Regulatory Authority (OGRA) has proposed a massive increase in fuel prices once again. As per media reports, the regulatory body has proposed a petrol rate of Rs20.7 per liter. Meanwhile, an increase in diesel prices of Rs19.61 per liter has been suggested.
The review was sent to the Ministry of Finance, headed by Dr Abdul Hafeez Sheikh. However, after consulting with Prime Minister Imran Khan, the ministry will make a final decision. The new rates will be enforced from 1 March to 15 March 2021.
It is important to note that, despite a proposal by OGRA for an increase in fuel prices, the federal government did not raise the prices of petroleum products.
Petrol Price Hike on Feb 1:
On February 1st, the federal government raised petrol prices by Rs2.70 per liter. The prices of petroleum products have been updated for the next 15 days, according to a Ministry of Finance notification.
It’s worth remembering that this was the third price rise in the last 45 days.
Petrol is currently priced at Rs111.90 per liter, up from Rs109.20 per liter previously. Meanwhile, the price of High-Speed Diesel was raised by Rs2.88 per liter, taking it to Rs115.83 per liter, up from Rs112.95 per liter previously.
In addition, the price of Kerosene Oil was raised by Rs3.54 to Rs80.19 per liter, whereas the price of Light Speed Diesel Oil (LDO) was raised by Rs3 to Rs79.23 per liter.
Levy Hit For Govt on January 1:
While the government raised rates, reports said it had a big revenue hit as it reduced its petroleum levy, though (PL). The ministry said that Rs4.50 per litre and around Rs2.51 per litre on HSD had decreased PL on petrol. The levy on kerosene oil, meanwhile, decreased by 55 paisa per litre and boosted by around 65 paisa per litre on LDO.