Pakistan's Oil and Gas Regulatory Authority (Ogra) has recommended an increase of Rs 14.38 per liter for petrol and Rs 4.89 per liter in the price of high-speed diesel for the month of May. This will increase the deterioration of the public as it is already being sold for high-speed diesel (HSD) Rs. 117 per liter. After the increase, the price of HSD can reach Rs 122 a liter.
Due to rising crude oil prices in the international market, the regulator of Pakistan has recommended a 15 percent increase in all petroleum products. Regulators have also recommended an increase of 7.45 per liter and 6.41 per liter respectively for kerosene oil and light diesel oil. According to Dawn, however, the government is also considering several measures like reducing taxes to provide relief to the public. Increasing the prices before Ramadan can be a lot of criticism of the government.
Last month, the government had hiked prices of all petroleum products by 6.45 percent. According to the prices applicable for April, prices of petrol and diesel increased by Rs. 6 per liter and kerosene and light diesel oil (LDO) were raised by Rs. 3 per liter. After this, the high-speed diesel was Rs 117 per liter and petrol was Rs 99 per liter. With this, the people of that area were already very upset.
If Ogra's recommendations were accepted, then in May, the price of petrol will increase from Rs 99 to Rs 113 and HSD from 117 to Rs 122 per liter. The price of LDO will be increased from 80 rupees to 86 rupees per liter. Similarly, the price of kerosene oil will reach Rs 96 per liter.
Oil marketing companies say that due to the seasonal impact, crude oil prices are increasing in the international market. Due to heat, the demand for oil is also increasing in hot countries due to power generation and wheat harvesting.
The US President has banned the purchase of crude oil from Iran, after which the cost of crude oil in the international market is increasing. Brent crude oil prices are close to $ 71 a barrel.
A few months ago, the Pakistan government had increased general sales tax on all petroleum products to 17 percent. Petrol and HSD are two major products that make the government the highest revenue because their consumption in the country is increasing. Consumption of petrol in the country is about 7 lakh tonnes and the consumption of HSD is 9 lakh tonnes. The consumption of kerosene and LDO is around 10 thousand tonnes per month. The cost of petroleum in Pakistan is increasing by 2017.