Petrol price peak to historic high in Pakistan - The Correspondent

Prime Minister Shehbaz Sharif on Friday turned down proposed increase in prices of petroleum products by up to Rs51 per litre, while NEPRA increased electricity tariff by Rs4.8530 per unit.

The Oil and Gas Regulatory Authority (OGRA) had proposed increase in price of diesel by Rs51.32 per litre (35.7 percent), petrol Rs21.30 per litre (14.2 percent), kerosene oil Rs36.03 per litre (28.7 percent) and light diesel oil (LDO) Rs38.89 per litre (39.9 percent).

However, the premier had turned down proposed increase in oil prices that would put an additional burden of around Rs30 billion on government exchequer.

The National Electric Power Regulatory Authority (Nepra) on the other hand raised the power tariff by Rs4.8 per unit on account of fuel adjustment for the month of February.

The CPPA-G had requested the power regulator to allow an increase of Rs4.9441 per unit to burden the power consumers with an impact of Rs38.4 billion.

The power regulator conducted a public hearing on March 31. However, it approved the increase of Rs4.8530 per unit to put an additional burden of around Rs37.7 billion on power consumers.

The power distribution companies will charge fuel cost adjustment (FCA) of February 2022 in the billing month of April 2022 to all consumer categories of XWDISCOs, except lifeline consumers.

Following the prime minister’s decision to not increase the fuel prices, the government would have to pay this amount to oil firms on account of price differential claims (PDCs).

An amount of Rs30 billion is already due on account of price differential claims due to keeping oil prices unchanged from April 1.

The government will be paying price of Rs60 billion to oil companies due to maintaining existing oil prices for the month of April.

The government has maintained existing price of diesel at Rs144.15 per litre, petrol Rs149.86 per litre, kerosene oil Rs125.56 per litre and light diesel oil (LDO) Rs118.31 per litre.

PML-N leader Shahid Khaqan Abbai also confirmed the development, saying that PM Shehbaz has decided to keep the petroleum prices unchanged.

He said the previous PTI-led government made a wrong decision to provide subsidy on petroleum products which “will damage the country’s economy.”

“They misled the masses and [reduced petroleum] prices for cheap publicity,” he observed while addressing a press conference in Islamabad flanked by former finance minister Miftah Ismail.

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