The government hiked the prices of various POL products by 10.15 per cent and increased the rate of petrol by Rs2.98 per litre and high speed diesel by Rs5.92 per litre. According the notification issued by the Ministry of Finance, the government increased the price of HSD by Rs5.92 per litre, petrol by Rs2.98 per litre, SKO by Rs5.94 per litre and LDO by Rs5.93 per litre.
A notification issued by Ministry of Finance said the new prices are effective from February 1 until midnight February 28.
According to report, the Oil and Gas Regulatory Authority had proposed Rs2.98 per litre or 3.7 per cent increase in the price of petrol, while double digit increase of Rs10.25 per litre or 11.4 per cent in the rates of HSD, Rs12.74 per litre or 19.8 per cent in the price of Superior Kerosene Oil and Rs. 11.72 per litre or 20.1 per cent in the price of Light Diesel Oil for the month of February on the basis of increase in prices of petroleum products in the international market. The government, however, decided to reduce the impact on the consumers through adjustment in the applicable levies, said the notification. As per the notification, the government increased price of HSD by Rs5.92 per litre or 6.58 per cent taking the price from Rs89.91 to Rs95.83 per litre. Diesel is widely used in transport and agriculture sector, and therefore, increase in its price would increase the input cost of farmers. Similarly, the government increased price of petrol by Rs2.98 per litre or 3.7 per cent from existing Rs81.53 to Rs84.51 per litre. The price of kerosene oil has also been increased by Rs5.94 per litre or 9.23 per cent from Rs64.32 to Rs70.26 per litre. The kerosene is being mixed in high speed diesel and therefore, there is a shortage of the product in local market.
The price of Light Diesel Oil was also increased by Rs5.93 per litre or 10.15 per cent from Rs58.37 to Rs64.30 per litre.
Against the standard rate of 17 per cent general sales tax, currently the government is charging 31 per cent GST on high speed diesel and 17 per cent on other petroleum products including petrol, kerosene oil and LDO.
Opposition parties have strongly rejected the government’s decision and termed the hike in prices of petroleum products a petrol bomb. It demanded that the government must immediately reverse the fresh hike in petroleum prices.
The government is constantly increasing prices of petroleum products in pretext of hike in prices in international market and it would enhance inflation. The prices of these products in Pakistan are already high as compared to the prices in international market. Rather than providing relief to the public, the government has further raised petroleum prices to meet revenue targets. This will increase burden on common man as prices of commodities and fares would be increased. The government must take steps to give relief to the masses and should control prices.
