Fuel Prices See Sharp Increase After OGRA’s Recommendations
The Finance Division announced sharp fuel price hikes on Sunday night. It raised petrol by Rs4.80 and diesel by Rs7.95 per litre.
The notification, confirmed that the Finance Division determined the new prices based on recommendations from OGRA (Oil and Gas Regulatory Authority) and the relevant ministries involved in fuel pricing.
From June 16, the government will raise the high-speed diesel (HSD) price from Rs254.64 to Rs262.59 per litre.
Likewise, petrol, previously priced at Rs253.63 per litre, will now be sold for Rs258.43 per litre.
Initial Estimates Were Lower Than Final Price Revision
Earlier forecasts suggested petrol could rise by Re1 and diesel by Rs5 per litre for the next fortnight. This was due to the increase in the prices of the international oil market which affected the local pricing trends.
Officials said the government expected the ex-depot petrol price to rise by about Re1 under the current tax structure. The final computation on June 15 would determine the exact increase. Meanwhile, the price of high-speed diesel was projected to rise by Rs5 per litre.
Additional Levies to Push Prices Higher from July 1
Earlier this week, the government signed a binding agreement with the International Monetary Fund (IMF). Under this deal, it will impose a Rs77 per litre petroleum levy starting July 1. It will also add Rs5 per litre carbon levy on oil and charge Rs2.5 per litre on petrol and diesel. These are also contained with the greater fiscal reform plan. They will likely drive fuel prices even higher in the coming week
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