PM okays petrol price hike by Rs2.31 against OGRA proposal of Rs10.68

ISLAMABAD: Prime Minister Imran Khan on Thursday approved an increase of Rs2.31 and Rs1.80 in the prices of petrol and diesel, respectively, contrary to Oil and Gas Regulatory Authority’s (OGRA) recommendation of Rs10.68 and Rs8.37.
“While considering relief for the people, Prime Minister Imran Khan approved the minimum possible increase in prices of petroleum products against Ogra’s recommendations,” a Prime Minister’s Office (PMO) press release said.
OGRA had proposed an increase of Rs10.68 in petrol price and Rs8.37 in diesel price but the prime minister rejected the proposal in the public interest.
Similarly, OGRA had proposed an increase of kerosene oil price by Rs10.92 and light diesel oil (LDO) by Rs14.87 which the prime minister reduced to Rs3.36 and Rs3.95 respectively.
Petrol is mostly used in private transport, small vehicles, rickshaws and two-wheelers, while the high-speed diesel (HSD) is mostly used in heavy transport vehicles, trains and agricultural engines like trucks, buses, tractors, tube-wells and threshers, and so on, while LDO is consumed by flour mills and a couple of power plants.
Earlier, the Ministry of Finance on December 15 had announced prices of petroleum products for the remaining days of the month.
At present, petrol is available at Rs103.69/litre, HSD at Rs108.44/litre, kerosene oil Rs70.29/litre and LDO at Rs67.86/litre in the open market.
After the changes take effect, petrol will be available at the new rate of Rs106 per litre while diesel will be sold for Rs110.24 per litre. The new prices will take effect from January 1, 2021.
Meanwhile, the new price of kerosene oil is Rs73.65 per litre and light diesel oil will be available for Rs71.81. The new prices are applicable from midnight tonight till January 15.