ISLAMABAD: The caretaker government on Wednesday increased the per-litre price of petrol by Rs13.55 and that of high-speed diesel (HSD) by Rs2.75 for the next fortnight ending Feb 15, citing higher international market and import premiums.
The government has also raised the price of liquefied petroleum gas (LPG) by Rs1.16 per kilogram for February.
In a late-night announcement, the Ministry of Finance said the government has decided to bring changes in the current prices of petroleum products during the fortnight starting from Feb 1, as recommended by the Oil and Gas Regulatory Authority (Ogra). The petrol price thus went up by 5pc while that of HSD rose by 1pc with immediate effect.
The new ex-depot price of petrol has been set at Rs272.89 per litre, up Rs13.55. Its retail price at the pump would be well above Rs273.50 per litre. Petrol is mostly used in private transport, small vehicles, rickshaws and two-wheelers and directly impacts the budgets of the middle- and lower-middle classes.
On the other hand, the price of high-speed diesel has been fixed at Rs278.96 per litre, up Rs2.75. Its retail price at pumps would, however, be higher than Rs280. Most of the transport sector runs on HSD. Its price is considered highly inflationary as it is mostly used in heavy transport vehicles, trains and agricultural engines like trucks, buses, tractors, tube-wells and threshers and particularly adds to the prices of vegetables and other eatables.
The government did not announce the prices of kerosene and light diesel oil (LDO). Kerosene is mostly used by unscrupulous elements for mixing it with petrol and, to some extent, for lighting in very remote areas, while LDO is consumed by flour mills and a couple of power plants.
An official said the prices of both major petroleum products — petrol and HSD — had increased in the international market over the past fortnight and the Pakistan State Oil (PSO) had to pay higher import premiums, even though the rupee had gained against the US dollar.
The price of petrol had come down by almost $3 per barrel to $86.5 per barrel over the last two weeks while that of HSD had become costlier by about $1.85 per barrel to $97.5, the official said.
Meanwhile, the rupee appreciated by about Rs1.5 against the dollar in the first half of January, to about Rs279.50 on Wednesday. The premium paid by PSO for securing product cargoes went up on both products by about $2 per barrel each. It increased to $6.5 per barrel from $4.2 for HSD and from $7.5 per barrel to $9.5.
LPG price up Rs14
On the other hand, the government on Wednesday slightly increased the price of liquefied petroleum gas by about 0.5pc, or Rs14 per 11.8-kg domestic cylinder, for February. The LPG price increase is on top of a net increase of almost 27pc over the last five months since September.
Ogra set the price of LPG at Rs257.57 per kg for February against Rs256.43 per kg in January, showing an increase of Rs1.16 per kg. As such, the 11.8kg domestic cylinder price was set at Rs3,039.63 for February against Rs3,025.87 in January, up almost Rs14. The 11.8kg cylinder price has increased from Rs2373.64 since July 31.
On the other hand, the price of a commercial cylinder (45.4kg) increased by Rs53 to Rs11,695 for February against Rs11,642 in January.
Ogra attributed the increase in LPG price to exchange rate loss as the international price of the commodity increased by Rs1.6pc. “The LPG producer price is linked with Saudi Aramco CP (contract price) and US$ dollar exchange rate,” the regulator said, adding that “as compared to the previous month, Saudi Aramco CP has increased by 1.6pc.
The average dollar exchange rate has, however, gone down by 1pc, resulting in an increase in LPG consumer price by Rs13.76 per 11.8 kg cylinder (0.45pc)“.
Published in Dawn, February 1st, 2024
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