Daily Times

ISLAMABAD: The federal government on Sunday increased the prices of petroleum products by up to 11.75 per cent for the month of January 2018.

Petrol and high-speed diesel – the two most widely used products – will now sell for Rs 81.53 and Rs 89.91 per litre respectively, after increase of Rs 3.96 per litrein ex-depot price of high-speed diesel and Rs 4.06 per litre in that of petrol.

The price of light-diesel oil (LDO) has been increased by Rs 6.25 per litre while the price of kerosene oil will see a hike of Rs 6.79 per litre.

Newly appointed Adviser to Prime Minister on Finance Miftah Ismail told a press conference in Islamabad that the decision to increase prices of petroleum products was taken by Prime Minister Shahid Khaqan Abbasi after recommendations of the Oil and Gas Regulatory Authority (OGRA).

Defending the price hike, Ismail said that the prices of petroleum products have continuously been increasing in the international market. He mentioned that the ratio of sales tax on petrol has not been changed.

The revised prices of petroleum products will take effect from January 1, 2018 (today).

Last week, the OGRA had recommended an increase of up to 23.6 per cent in the prices of petroleum products after the rates of crude oil surged in theinternational market. According to a summary sent to the Ministry of Energy (Petroleum Division), OGRA had recommended an increase of Rs 4.06 per litre (5.2 per cent) in the price of petrol, Rs 5.83 per liter (11.4 per cent) in the price ofhigh speed diesel, Rs 13.58 per litre (23.6 per cent) in the price of superior kerosene oil (SKO) and Rs 12.49 per litre (24 per cent) in the price of light diesel oil (LDO).

State Minister for Petroleum Jam Kamal had last week informed the National Assembly that prices of petroleum products were less in Pakistan as compared to the neighboring countries.

Responding to calling attention notice regarding recent increase in the price of the petroleum products, he had said that price in India was Rs 118 per litre, Sri Lanka Rs 87 per litre, Bangladesh Rs 112 per litre, Nepal Rs 100 per litre and Pakistan Rs 77.40 per litre.

He said that prices of petroleum products in Pakistan were linked with the international market. “If the prices of petroleum products are decreasing internationally, the impact is being passed on to local consumers,” he had said, adding that internationally exploration activities had been curtailed due to decrease in the prices of petroleum products but in Pakistan exploration activities had not been curtailed. He had told the Lower House that 2-D and 3-D survey had been completed in various areas. He had also dispelled the impression that any unlawful tax had been imposed on the petroleum products.

The business community, however, last week had strongly opposed any increase in the prices of the petroleum products in the country.

The Lahore Chamber of Commerce and Industry (LCCI) last week advised the government to not even think about any increase in petroleum prices at this critical stage when all indicators were not in favour of economy. “No sector would be left unaffected if government goes against the ground realities and increases POL prices that is one of the major raw materials for the industry and a must for trade and economic activities,”a statement by LCCI office-bearers had stated.

“The government should cut down non-development expenditures instead of dropping petrol bomb on the trade and industry which is already struggling for survival.Industry would not be able to contribute in economic uplift of the country if anti-industry decision is taken,” it said.

“Though oil prices in the international market are on the rise but instead of passing this surge to the trade, industry and masses, government should cut the number of taxes and duties levied on petroleum products. It is not the industrial sector alone but agriculture sector will also badly suffer due to increase in oil prices,” it added.

Published in Daily Times, January 1^st 2018.