Petrol, diesel prices increased by Rs 2.25, Rs 2.26 per liter

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ISLAMABAD: The government has decided not to pass on the full impact of rise in the prices of petroleum products in the international market and increased the prices of petrol by just Rs 2.25 per liter and high speed diesel by Rs 2.26 per liter.

It is almost half of the increase which had been recommended by Oil and Gas Regulatory Authority (OGRA), Federal Minister for Finance Mohammad Ishaq Dar said while announcing the prices of petroleum products effective from February 1 to February 15.

The minister said in line with the Prime Minister’s instructions for providing maximum relief to the common man, and keeping in view that kerosene oil and light diesel oil (LDO) was used by the low income segments of the country’s population, it had been decided to maintain their prices at the current level February 15.

He said the fact that kerosene oil caters to the energy needs of the poor, especially in the winter season, was also taken into consideration.

He said in order to maintain the prices of both kerosene oil and LDO at current levels, the government would not only forego all applicable taxes and duties on them but would also give subsidy to the consumers.

He said the Ministry of Petroleum & Natural Resources and Oil and Gas Regulatory Authority (OGRA) had recommended an increase of Rs 4.16/litre in the price of MS 92 RON petrol, Rs 4.29/litre in the price of high speed diesel (HSD), Rs 16.71/litre in the price of kerosene oil and Rs 12.53/litre in the price of light diesel oil (LDO).

The Finance Minister said in order to maintain stability, prices of the petroleum products had been maintained since April 2016 despite an increase of around 43% in international oil prices during last year.

He said the government had been absorbing the negative financial impact due to its decision not to pass on impact of oil price raises internationally to the end consumers.

Only partial increase in the prices of petrol and HSD was passed on to the consumers for the month of December 2016 and for the last two weeks of January 2017 against the OGRA’s recommendations, he added.