Federal government increases the prices of petroleum products including petrol, diesel & kerosene on the recommendations of Oil & Gas Regulatory Authority (OGRA).
The change in rates came after fluctuations of oil price in global market and the new rates will be applicable from today 1st March 2018. The increase and new rates are as follows:
Product | Old Price (Rs) | New Price (Rs) | Increase (Rs) |
Motor Spirit (MS) 92 RON | 84.51 | 88.07 | 3.56 |
High Speed Diesel (HSD) | 95.83 | 98.45 | 2.62 |
superior kerosene oil (SKO) | 70.18 | 76.46 | 6.28 |
Light Diesel Oil (LDO) | 64.30 | 65.30 | 1.00 |
According to Ministry of Finance OGRA & Ministry of Energy requested an increase of Rs. 6.94 in diesel but only an increase of Rs. 2.94 was made ‘for the benefit of general public’ read the statement from Finance Ministry.
It is said that high rates of government taxes on different stages of petroleum products is the main reason of these products being expensive.
The increase of petroleum prices will also result in inflation as prices will be increased for many services and products such as transportation, electricity & plastic. As almost all manufacturing requires electricity, transportation & plastic the price of product will increase.