Partial relief in Oil and Gas prices hike – Alfalah Securities Limited

Karachi: The government has reduced the price of petrol by PkR 2.32 per litre to PkR 103.36.

According to Alfalah Securities Limited, similarly, the prices of diesel and kerosene oil are also lowered by PkR 1.16 per litre and PkR 1.74 per litre to PkR 107.0 and PkR 99.95 per liter respectively. At the beginning of the month, the Ministry of Petroleum and Natural Resources had increased the prices of local POL products where the prices of Petrol, diesel and kerosene were raised by PkR 8.02 per litre, PkR 4.70 per litre and PkR 5.29 per litre to PkR 105.08, PKR 108.1 and PkR 101.69 respectively. Minister for Petroleum and Natural Resources has stated that the ministry has decided to fix prices of petroleum products fortnightly instead of monthly basis on the request of refineries despite strong reservations from the Oil and Gas Regulatory Authority (Ogra) and Ministry of Finance.

Similarly, the prices of CNG have also been reduced by PkR 1.95 to PkR 86.75 from PkR 88.70 per kg for region-I which includes Northern Punjab (Potohar), KPK and Balochistan. While the prices for region-II (Sindh, South and Central Punjab and Balochistan) are reduced by PkR 1.78 to PkR 79.20 per kg. Earlier, the Petroleum Ministry had also made a significant increase in the prices of CNG by PkR 9.93-11.58 per kg on account of the imposition of 20% Gas Infrastructure Development Cess (GIDC) and bringing it at par with 55% of petrol prices. The prices were raised due to higher international petroleum product prices and devaluation of Pak rupee making imports more expensive. However, the drop in prices of POL products would partial ease of the inflationary impact while the government will forgo a portion of the revenue arising from the petroleum levy to after the reduction.

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