The government on Tuesday partially increased the prices of petroleum products up to Rs 1.71 per litre effective from March 1. Addressing a press briefing, Federal Minister for Finance Ishaq Dar announced review in the prices of the petroleum products for the next fortnight. He said that the government has decided to increase petrol price by Rs 1.71 per litre and HSD by Rs 1.52 per litre. Prices of kerosene oil and light diesel oil (LDO) have been increased by Rs 0.75 per litre and Rs 0.66 per litre respectively.

The Oil and Gas Regulatory Authority (OGRA) suggested on Monday last to the federal government to increase prices of petroleum products from March 1. The OGRA had proposed an increase of Rs 2.96 per litre for petrol, Rs 2.18 for HSD, Rs 17.55 for kerosene oil and Rs 10.94 for LDO. However, the government made partial increase in prices of petrol and diesel and absorbed some impact of the proposed increase in price of petrol and high speed diesel by adjusting tax rates.

Following the government's decision, petrol will be sold at Rs 73 per litre against Rs 71.29 per litre, HSD at Rs 82 per litre against Rs 80.48 per litre, kerosene oil at Rs 44 per litre against Rs 43.25 per litre and LDO at Rs 44 against Rs 43.34 per litre till March 15, 2017. At present, two types of taxes are being charged from consumers - petroleum levy and general sales tax. The government had also made partial increase in price of petrol and high speed diesel from February 16. However, no raise had been made in the prices of kerosene oil and light diesel oil.

Copyright Business Recorder, 2017