Surge In Pakistan Petrol Price By PKR 25
The federal government has announced a massive increase in petrol price through a recent notification issued by the Ministry of Finance. The petrol price has increased by PKR 25.58 per litre which means that a litre of petrol will sell for a little over PKR 100 again after the prices were dropped in the past few months.
As per the notification, the price of high speed diesel has been increased by PKR 21.31 while the prices of light diesel and Kerosene oil are increased by PKR 17.84 and PKR 23.50 respectively. This price increase is effective immediately i.e; June 27, 2020. Previously, it was said that the petrol prices may increase from July 1, 2020.
Normally, the new petroleum prices are proposed by the Oil and Gas Regulatory Authority (OGRA) every month. However, this time the hike in petrol price is on the recommendation of Petroleum Division. Due to a huge price reduction of crude oil in the international market, the government has cut petrol prices four time since March 1, 2020. This resulted in an overall drop of petrol price from PKR 116.56 to PKR 74.50.
On the other hand, the government doubled the petrol tax from PKR 15 as of January to PKR 30 now. The local prices are determined by the government on the basis of the past prices of international oil. It is then calculated by considering the price at which crude oil was imported by the country. This means that the petrol that is being consumed today was imported few weeks earlier.
According to the statement issued by the Finance Ministry, it is said that the decision to revise the prices of petroleum products is taken due to increasing oil prices in the international market. Nevertheless, these increasing petrol prices affect general public the most especially these days when the whole world is fighting a pandemic in the form of COVID-19.
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