Petrol price likely to go up by Rs14.37 from May 1

[maithil]

The Oil and Gas Regulatory Authority (OGRA) has recommended increasing prices of petroleum products by as much as Rs14.37 for the month of May.

In a summary moved to the Petroleum Division on Monday, OGRA proposed that the price of high speed diesel (HSD) be raised by Rs4.89 per litre and petrol price be hiked by Rs14.37 per litre for the next month.

The regulator has also requested an increase in prices of kerosene oil of Rs7.46 per litre while a rise of Rs6.40 per litre has been recommended for light diesel oil (LDO).

If the government accepts this recommendation, then diesel prices would inflate to Rs122.32 per litre, petrol to 113.26 per litre, LDO to Rs86.94 per litre and kerosene oil would go up to Rs96.77 per litre.

Prime Minister Imran Khan will take the final decision over the price hike after consultations with the petroleum and finance ministries.

Last month, the government had raised the oil prices by up to Rs6 per litre for April in line with fluctuation in global oil prices.

Prices of petrol and high speed diesel were increased by Rs6 per litre each, and Kerosene oil and light diesel oil by Rs3 per litre each.

The price of diesel was inflated from Rs111.43 to Rs117. 43 per litre, petrol from Rs92.89 to 98.89 per litre, LDO from Rs77. 54 to Rs80.54 per litre and kerosene from Rs86. 31 to Rs89.31 per litre.

High speed diesel is widely used in agriculture and transport sectors and therefore increase in its price would have a direct impact on life of a common man due to inflationary impact. The petrol is used in vehicles. Kerosene is used in remote areas for cooking where LPG is not available.

https://www.pakistantoday.com.pk/20...p-by-rs14-37-from-may-1/#.XMgN-ZgYglw.twitter

 

[maithil]

https://twitter.com/x/status/1123149550850662400

 

[Khafee]

@MastanKhan @Mangus Ortus Novem Your comments please

 

[Skull and Bones]

What is the present rate of inflation in Pakistan??

 

[Viny]

With the depleting reserves, govt will have to take hard decisions, they are already having increased deficit, so cant reduce taxes or absorb the global price hikes.

Consumers will definitely feel the pinch, with inflation closing towards double digit, it would further impact the inflation. Tough times ahead, but this might give some space for government to bring better days in future.

 

[maithil]

Pakistani consumers should pay same for Petroleum products which people from other countries in region pay.

 

[Riz]

 

[Riz]

Indians paying US$ 1.10 for 1 liter petrol.... Pakistanis paying 0.70 US$ for 1 liter petrol....

 

[maithil]

Indians paying US$ 1.10 for 1 liter petrol.... Pakistanis paying 0.70 US$ for 1 liter petrol....

Yes. Petrol can be raised till 150.

 

[Sugarcane]

Pakistani consumers should pay same for Petroleum products which people from other countries in region pay.

Prices in Pakistan even after proposed increase will be lower than India, Are you proposing more increase?

 

[Jf Thunder]

the govt will say "awaam ke wassehtar mufaad me, qeematein 14 rupay ke bajai sirf 10 rupay barhai jain gi"
this Govt is going to increase the petrol prices at a rate of 10PKR per month
by the end of this year it will be 220 PKR

 

[Sugarcane]

Gareebo ka kuch toh khyial kro selected PM sahib.phley toh NS loot raha tha tab prices barh rahi thi .....app toh imandar ho phir bi greeb Ki he maar rahay ho...

People don't want to pay taxes, want government jobs with all perks, want all services free or cheap. Kindly, propose solution how government should arrange funds to run the country and provide freebies.

 

[Mangus Ortus Novem]

@MastanKhan @Mangus Ortus Novem Your comments please

Khafee, my friend,

We cann't see things in isolation. Just for the record perol price here in NL is €1.67 per litre. How much would that be in PKR?

Of course, NL is a high gross income country... average income €31k... but after taxes and housing/utilities bills the spendable income becomes quite less... an average bread price is €1.9. In other words life is quite expansive... people won't be left with much at the end of the month. But country is developed so it becomes relative...

No way it is a comparison to Pak average income... but somehow, important to create a context. For without context things are just bonggi...

The problem is structural and fundamental.

All these socialmedia junkies or #MarasiMedia commentators conveniently forget the fundamentals and just create masala... nobody speaks the truth in Pak.

The price in international market of crude is going to see fluctuation... going to hover between $65 to $85... we might see some peaks for $100 per barrel. This will of course reflect in the pricing of the feul in Pak and everyother market.

Now what is the problem?

The problem is NOT the price hike. In a fair market pricing this should go up and down as the crude price goes up or down.

A smart FinMin would calculate an average on annual basis and would try to price it accordingly. That is to say when the price is low keep the tax up and when the price is high keep the price low... in this way a fine balance could be achieved in revenue goals and consumer protection.

However, as I have stated many a times the structure of Pak economy is a combination of renteniering, aidgame and debt-balooning... where the elite is concerned about moneylanudering with full help of SBP. I have detailed it many times hence now going over it again is pointless.

The problem is revenue generation i.e. FBR and dollar reserves. Both are interlinked. To be a functional state Pak requires around 200 bln dollars in reserve. It is not a big amount for a state the size of Pak.

At the same time we need to understand that both NooraLeague and ZardariLeague truly massacred the economy.

By throwing dollar into the market, a dollar which was a loan, they kept the PKR artificially up. The same dollars which they then bought at the cheap and moneylaundered abroad... it was a cycle.

Please, see there is NO industry in Pak. The agro sector is not productive... as per acre yield is one of the poorest in the world... and for a country which has enormus fertile land.

So, in short regardless which government comes to power they would have to do the same.

If Pak State has any sense of self perservation then it should create a Debt Commission, An Economy Commission.

In the economy commission it should involve PRC experts.

In short these inflationary pressures will remain. In the next five years do you know how much debt Pak State has to service? This year alone it is 10 bln dollars...and more debt is maturing.

IMF package is essentially for more borrowing from international lenders to service debt. So the debt trap created by JumWhoriaat is quite big.

A state which can't even get money out of Noora or put him jail or bring Isaq Dollar or Nawaz Sons for trial backhome... deserves to remain in this grind.

The poor are born to suffer... that is why they are poor in the first place.

The mummy-daddy liberals or #MarasiMedia is nothing more than parasites... I have seen all these people how they live in the West... backhome they pretend to be many things... here they are just.....well you know!

So yeah... price hike is necessary. There is no other way.

If IK is smart he should just make Shabaz PM and go into opposition or dissolve assemblies and let a caretaker come in and take all the blame of the pain for next 3 to 4 years.

For 40+ years a state did jack and elite did moneylaundering... so hell yeah... petrol prices are going up!

It is yahoodi sazish...


Mangus

 

[American Pakistani]

Indians paying US$ 1.10 for 1 liter petrol.... Pakistanis paying 0.70 US$ for 1 liter petrol....

Actually Pakistanis pay only 0.67 cents, 11 cents above oil rich KSA. Even US citizens pay 0.71 cents. Note that US itself produce massive amount of oil, not to mention their mammoth economy. And yes if you look at regional countries i.e., India, China, Bangladesh, they all have gasoline prices way higher than Pakistan. It was stupid that Pakistani govt was not charging the consumers and instead providing subsidy to an import that is responsible of swallowing largest amount of $ reserves.

Good decision but govt should increase even more for residential consumers.

 

[macnurv]

Tabdeeli aa gai hai meray hum watnoon, with the same cabinet as that of PPP Government.