The government surprised the people on Tuesday by raising the price of fuel by Rs12.03 per litre due to an increase in crude oil prices on the international market.
These are the highest-ever pricing for all of the products, as well as the largest-ever price increase in one go.
“The prices of petroleum products are showing a drastic increase in the international market and presently are at the highest level since 2014. Despite the unabated increase since the beginning of the year, Prime Minister Imran Khan deferred the last review of petroleum products’ prices on January 31, 2022, and advised against the summary of OGRA,” said the finance division in the latest statement.
According to the finance division, the government also assessed a 0% sales tax and lowered the levy to provide “relief” to customers in comparison to the projected amount.
The government has suffered a revenue loss of roughly Rs 35 billion every two weeks as a result of the “relief,” according to the finance division.
“In the fortnightly review of Petroleum Products’ prices, the prime minister has considered the recommendation to increase the prices of petroleum products in line with a change in the international oil prices. Despite the increase in the prices of petroleum products, petroleum levy and sales tax have been kept to the minimum,” said the notification.
As Information Minister Fawad Chaudhry hinted, a rise in gasoline prices was expected.
The minister had confirmed the hike in a press conference after the cabinet meeting.
While announcing the price hike, the finance ministry said the prices of petroleum products were showing a drastic increase in the international market and were at the highest level since 2014.
