The government early Friday hiked the price of petrol by Rs8.03 per litre, a day after Prime Minister Imran Khan warned that the rate of petroleum products would witness a rise.
The new price of petrol stands at Rs145.82 per litre after the increase, according to a notification from the finance ministry.
The increase will go into effect on November 5, the notification said.
Similarly, the price of high-speed diesel has gone up by Rs8.14 per litre, and it will now cost Rs142.62 per litre.
The price of light diesel oil has been fixed at Rs114.07 per litre after an increase of Rs5.72, while the rate of kerosene oil has been jacked up by Rs6.27 to Rs116.53 per litre.
“On November 1, 2021, the Prime Minister had not agreed with the proposals worked out by OGRA and Finance Division and directed to maintain the prices as notified on October 16, 2021,” the notification stated.
The government “has absorbed the bulk of pressure after making adjustments in the Sales Tax and Petroleum Levy,” it stated further, adding that otherwise, the prices would have been far higher than the present rates.
“Maintaining the 16 October 2021 petroleum prices had some underlying concerns for example cash flow issues due to the short recovery of the cost,” said the ministry.
In the previously notified petroleum prices, the government had already provided significant relief to the consumers, according to the notification.
Existing price w.e.f 16-10-2021
New price w.e.f 5-11-2021
|Light diesel oil||Rs108.35||Rs114.07||Rs5.72|
In a televised address to the nation on Wednesday, PM Imran Khan said the government would have to jack up the prices of petroleum products in the country.
“What can we do if inflation is being driven because of global factors?” the premier questioned as he cited the examples of oil and gas prices worldwide.
“Yes, we are facing inflation in the country but you should also look at what the government is doing to alleviate the situation,” he said, adding that due to factors which are not in the hands of the government, petrol prices will have to be increased further.
“If we do not increase the price of petrol, the deficit will increase,” the PM said, adding that global oil prices have risen by 100%, while the price of petrol in India is Rs250 per litre.
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