According to a source in the Ministry of Petroleum, the Oil and Gas Regulatory Authority (OGRA) has produced a summary to raise petroleum prices for the next week, which begins on March 1, due to skyrocketing worldwide prices after Russia’s invasion of Ukraine.
According to sources, if the Petroleum Development Levy (PDL) is not raised, the price of diesel and petrol is projected to rise from Rs. 4.5 to Rs. 5.5 per liter. Petrol prices might rise by Rs. 5.5 per liter, while diesel prices could rise by Rs. 4.5 per liter.
The government is required by the International Monetary Fund (IMF) to hike the PDL at a monthly rate of Rs. 4 per liter. If the PDL is raised, petrol prices might rise to Rs. 9.50 per liter and diesel prices to Rs. 8.52 per liter.
Petrol is priced at Rs. 17.92 per liter PDL, while diesel is priced at Rs. 13.30 per liter PDL. The GST on fuel goods has also been reduced to zero.
The government raised petroleum product prices by a record Rs. 12.03 per liter, bringing the official price of petrol to Rs. 159.86 a liter.
Petrol would cost Rs. 169.36 a liter if the government raises the price by Rs. 9.50 per liter. Similarly, increasing the price of high-speed diesel by Rs. 8.52 per liter would result in a new price of Rs. 162.67 per liter.
However, the Prime Minister will make the ultimate choice based on the Ministry of Finance’s opinion.
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