Finance Minister Ishaq Dar on Friday announced that the price of petrol would remain unchanged at Rs262 per litre for the next fortnight while the price of high-speed diesel (HSD) was raised by Rs7.5 per litre to Rs260.5.
Addressing a press conference, the finance minister did not announce if there were any changes in the prices of kerosene and light-diesel oil. Explaining the reason for the HSD price increase, Dar said the Oil and Gas Regulatory Authority (Ogra) had reported an increase of $3.5 in diesel prices in the international markets in the last few days, with a similar upward trend for petrol prices. He said the Ogra team had strived to pass on the minimum possible price increase to consumers as per the prime minister’s instructions so there was no increase in the petrol price.
“However, because there has been a lot of negative movement and increase in prices for diesel, they (Ogra) have recommended the government to do a minimum increase of Rs7.5 in the price of diesel.”
On June 15, the government had decided to keep the prices of all petroleum products unchanged, except light diesel oil, in line with the international market.
Dar had said the final price calculations provided by Ogra at the close of business hours had suggested there was no impact on prices although international prices had slightly gone up. Therefore, he had said the prices would remain unchanged. As such, the ex-depot rates of high-speed diesel, petrol and kerosene were maintained at Rs253, Rs262 and Rs164.07 per litre.
Meanwhile, the price of light diesel oil was increased by Rs2.52 to Rs150.20 per litre from Rs147.68.
Last week, oil fell, giving up earlier gains, as worries over further interest rate hikes and slowing demand offset support from an industry report showing a larger-than-expected drop in US crude inventories.
Benchmark Brent crude prices are down over 15% this year as rising interest rates hit investor appetite, while China’s economic recovery has faltered after several months of softer-than-expected consumption and other data. At 1348 GMT, Brent was down 43 cents, or 0.6%, to $71.83 a barrel, while US WTI crude slipped 12 cents, or 0.2%, to $67.58.
Meanwhile, the Oil Companies Advisory Council (OCAC) has cautioned the government that imports on foreign suppliers’ account through the customs bonded storages pose a significant threat to the local refineries, leading to potential economic repercussions not only within the oil industry but also for the overall economy.
