Decision taken due to increase in oil prices in international market, Govt
Islamabad_The government increased the petrol price by Rs26.02 per litre on Friday, a decision which was due as the government revises the fuel prices every 15 days.
“Owning to the increasing trend of petroleum prices in the international market, the government has decided to revise the existing consumer prices of petroleum prices,” said the finance ministry’s press release.
Unlike in the past, the caretaker government did not announce the fuel rate in a live address to the nation.
After such a massive hike, the new rate of petrol is Rs331.38. Moreover, the new rate of high speed diesel is Rs329.18 after an increase of Rs17.34.
International oil prices rose on Friday and are set for a third weekly gain, as better-than-expected Chinese economic data and reports of record oil consumption bolstered the view that demand in the world’s second-largest crude consumer will continue to surge, Reuters reported.
Brent crude futures rose 65 cents, or 0.7%, to $94.35 as of 0630 GMT, while the US West Texas Intermediate crude was up 67 cents, also 0.7%, at $90.83. Both benchmarks were up about 4% from a week ago.
In the last increase announced at the beginning of September, the price of petrol had been increased by Rs14.91 while the price of diesel had been increased by Rs18.44 per litre.
The Finance Division said the hike was due to the “increasing trend of petroleum prices in the international market and exchange rate variations”.
Back then the price of petrol went up by Rs14.91 per litre, and the price of high-speed diesel (HSD) by Rs18.44 per litre.
Today’s hike in petrol prices was expected due to the rise in global oil prices.
“The rupee appreciation will have a positive impact on the petroleum prices, but it will not be enough to offset the impact of rising global oil prices,” an industry official told The News.
The government reviews and adjusts the petroleum prices every fortnight, based on Ogra’s recommendations. The final decision, however, rests with the finance ministry, which sometimes absorbs part of the increase to provide relief to consumers.
But the government has to raise fuel prices as agreed with the International Monetary Fund (IMF) under a $3 billion standby agreement
