Petrol Prices Expected to Increase From 16 April 2022

The Federal Government may increase the Petrol Prices in Pakistan by Rs. 21.30 per litre starting 16 April 2022. Meanwhile, the Price of Diesel is expected to increase by Rs. 51.32 per litre as proposed by the Oil and Gas Regulatory Authority (OGRA). However, the final decision will be announced by the Finance Ministry after consultation with Prime Minister Shehbaz Sharif.

LATEST UPDATE: Latest Petrol Prices in Pakistan – 16 April 2022

Furthermore, the OGRA has also suggested increasing the price of Kerosene Oil (KO) by Rs. 36.05 per litre, while recommending an increase of Rs. 38.89 per litre in the Price of Light Diesel Oil (LDO) for the remain half of the current month April 2022.

It must be noted that these recommendations were based on the current petroleum levy and General Sales Tax (GST). which is 0%. However, the Oil and Gas Regulatory Authority (OGRA) has also proposed a summary to increase the Petrol Prices in Pakistan with the inclusion of full Petroleum Levy and GST at Rs. 30 and 17%, respectively.

According to these rates of Petroleum Levy and GST, the recommendation has been made to increase the Petrol Price by Rs. 83.50 per litre, while suggesting an increase of Rs. 119 per litre in the Price of High-Speed Diesel. Similarly, the summary recommends an increase of Rs. 77.56 per litre in the Price of Kerosene Oil (KO) and Rs. 77.31 in the Price of Light Diesel Oil (LDO).

If the increase in approved, the new Petrol Prices in Pakistan will come into effect from 16 April 2022 and these will remain applicable until the end of the month. Furthermore, this will mark a record increase in the petroleum prices in the history of the country.

However, it is expected that the new Government will not increase Petrol Price in Pakistan to win the sympathies of the already burdened population.

It is pertinent to mention the Government had reduced the Petrol Prices in Pakistan by Rs. 10 per litre on the directives of ex-Prime Minister Imran Khan, who promised that price of these commodities will not be raised until the next fiscal budget is released, starting March 2022.

The current Petrol Price in Pakistan is Rs. 149.86 per litre, the Price of High-Speed Diesel is Rs. 144.15 per litre, while the Price of Kerosene Oil and Light Diesel Oil (LDO) is Rs. 125.56 per litre and Rs. 118.31 per litre, respectively. It bears mentioning that Finance Division stated the government will bear the additional burden of Rs. 33 billion for the fortnight (1-15 April, 2022) to keep the prices at the existing levels.

Petrol Prices in Pakistan (w.e.f 1.04.2022)

However, the Petrol Prices in Pakistan are expected to get a massive hike as Imran Khan has been ousted from office of Prime Minister of Pakistan via a no-confidence motion, while majority of the PTI lawmakers tendered their resignations from the assemblies. The final decision regarding the petroleum prices will now be made by Prime Minister Shehbaz Sharif and the Opposition-led government.

It bears mentioning that Global Crude Oil Prices have fallen below $100 a barrel for the first time since 16 March 2022. However, it will take time for the effect to be seen locally as fuel is imported in the country.

PM Shehbaz Holds Meeting on Petrol Prices

The newly elected Prime Minister, Shehbaz Sharif, on Wednesday presided over an emergency meeting regarding prices of petroleum products in order to provide maximum relief to the masses. According to the details, the meeting was attended by Former Prime Minister Shahid Khaqan Abbasi, ex-Finance Minister Miftah Ismail, Oil and Gas Regulatory Authority (OGRA) Chairman and the Secretaries of the Finance and Petroleum Division.

In the meeting, the attendees discussed various measures to control the skyrocketing Petrol Prices in Pakistan and how the new government can continue to provide subsidies on petroleum products. As mentioned above, the government is bearing a loss of Rs. 33 billion by keeping the petrol prices stable for the current fortnight 1 – 15 April 2022.

Read more: Dollar rate in Pakistan – Daily Updates.

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