The government has increased the prices of petrol by 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.
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.
However the Ministry of Petroleum & Natural Resources and Oil and Gas Regulatory Authority (OGRA) had recommended an increase of Rs 4.16/liter in the price of MS 92 RON petrol, Rs 4.29/liter in the price of high speed diesel (HSD), Rs 16.71/liter in the price of kerosene oil and Rs 12.53/liter 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.