Government increases petrol price by Rs1.7 per litre

Finance ministry on Monday rejected OGRA's recommendation to increase price of petrol by Rs3.22, after a notification was released that a Rs1.7 price hike for the commodity was effective from 12AM today.

The Oil and Gas Regulatory Authority (OGRA) had earlier sent a summary to the government, with the recommendation to increase price of petrol by Rs3.22, diesel by Rs5.2, kerosene oil Rs6.97, and light diesel Rs6.95.

According to the notification, issued by the government, the new petrol price is Rs87.70, while diesel price was increased by Rs2.31 to Rs98.76.

Earlier today, the expected prices per liter of the commodities were: petrol Rs89.22, diesel Rs101.47, kerosene oil Rs83.43 and light diesel Rs72.25. A 200 percent increase in the levy on petroleum products was also recommended, as suggested in the new budget for the fiscal year 2018-19.

Under the Finance Bill 2018, tax on diesel, petroleum, crude oil and high-octane fuel would be increased from Rs10 per litre to Rs30. 

The same increase would be imposed on the levy of light speed diesel and gasoline, while levy on local liquefied petroleum gas could go up by 328%.

The sixth budget of the Pakistan Muslim League-Nawaz government was presented on April 27 with an outlay of Rs5,932.5 billion. The budget was presented amid strong protest from the opposition benches against the full-year financial plan despite the incumbent government's remaining tenure of three months.