Staff Report
ISLAMABAD
The government on Wednesday dropped another oil bomb by increasing the price of petrol of Rs 22.20 per liter effective from February 16, 2022.
It also raised the price of high speed diesel (HSD) by Rs 17.20 per liter.
The government had increased prices of petrol and diesel by Rs 35 per liter by the end of last month primarily due to the massive devaluation of rupee against dollar.
The fresh increase in prices of petrol and diesel is also due to rupee depreciation against dollar, the finance ministry said in a statement.
According to the finance ministry, the government had also increased the price of kerosene oil by Rs 12.90 per liter and light diesel oil LDO Rs 9.68 per liter.
After the increase, the price of petrol had gone up to Rs 272 per liter against its earlier price of Rs 249.80 per liter, registering an increase of Rs 22.60 per liter. Petrol is an alternative to CNG. Due to shortage of gas in the country, the CNG was not available in the market.
Punjab province has been using LNG for the last few years in CNG stations due to shortage of gas.
However, LNG was not also available in the current winter season due to non-availability of LNG in the global market and failure of the government companies to make timely arrangements. Motorbikes and cars use this fuel.
Due to closure of CNG stations, the demand of petrol had also increased in the country.
The price of high speed diesel which is widely used in transport and agriculture sectors, had also went up to Rs 280 per liter compared to its earlier price of Rs 262.80 per liter, with an increase of Rs 17.20 per liter.
The masses were already facing impact of higher inflation and recent increase in price of diesel will also cause another wave of inflation in the country.
Transport fare will go up which would ultimately lead to rise in prices of goods across the country.
The kerosene oil will also be available now at higher price of Rs 202.73 per liter against its earlier price of Rs 189.83 per liter.
Kerosene oil is used for cooking especially in remote areas of Pakistan where Liquified Petroleum Gas (LPG) was not available
Pakistan army is also key user of kerosene oil in northern part of the country.
Light Diesel Oil (LDO) will also be sold at price of Rs 196.68 per liter against its earlier price of Rs 187 per liter, witnessing a hike of Rs 9.68 per liter. The LDO is used in industry.
LPG prices
Oil and Gas Regulatory Authority (OGRA) has jacked up the price of liquefied petroleum gas (LPG) by Rs 2 per kg for the last fifteen days of February 2023, and issued a notification in this regard.
According to the OGRA notification, LPG price has been fixed at Rs 266/kg after witnessing a hike of Rs 2/kg while the price of domestic cylinder has been increased by Rs 27 and commercial cylinder by Rs 102 for the second half of February 2023.
Following the issuance of the OGRA notification effective from 15th February 2023, LPG will be available at Rs 266/kg, domestic cylinder will be available at Rs 3141.29 and commercial cylinder at Rs 12086 in the open market of the country.
Advising all the district presidents of LPG Associations to stage protests against the LPG price hike, Chairman LPG Association Irfan Khokhar said that LPG price hike is unbearable. He said that instead of giving relief in LPG price the government has imposed more taxes while billion rupees subsidy is being offered in imported Liquefied natural Gas (LNG).
He said that this is second increase in LPG price during a single month of February 2023. He said the latest hike in the LPG price is a big blow to the inflation-hit masses that are already bearing the brunt of skyrocketing prices of essential commodities, significant increase in transportation charges and the sky-high prices of the petroleum products as well in the country.
He said that the government should take solid measures to reduce the miseries of the common man by improving the economic conditions of the country. Furthermore, he highlighted the importance of relief, saying the government in order to provide some respite to the public should immediately allow the LPG plant of Jamshoro Joint Venture Limited (JJVL) to start production. This has been closed for the last 32 months and has so far caused a revenue loss of approximately Rs 157 billion.
He said around 5000 metric tonnes of LPG is being consumed on a daily basis in the country while the daily consumption of the LPG is around 2000 metric tonnes and the LPG plant of JJVL alone can produce 550-570 metric tonnes of LPG on a daily basis. Owing to widening gap in the demand and supply of local LPG, around 60% of the total needs of LPG is being fulfilled through imported LPG, explained Khokhar.
Historic LPG prices are unbearable for all those who live in remote hilly areas and use the LPG as a fuel for lightening, heating or cooking purposes in case of absence of other fuels, he added.
