Gasoline and diesel prices increased by Rs4 per liter – Journal

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ISLAMABAD: The government on Friday increased the prices of the main petroleum products by Rs 4 per liter for the next two weeks, with gasoline reaching Rs 144.82 and diesel Rs 141.62 per liter.

The price of kerosene has been increased from Rs 3.95 to Rs 113.53 per liter and that of light diesel from Rs 4.15 to Rs 111.06.

Announcing the new rates in effect until January 15, the finance ministry praised the prime minister for rejecting the summary of a higher increase calculated by the Oil and Gas Regulatory Authority (Ogra). The ministry also said the largest increase was to increase the oil tax to meet the target agreed with the International Monetary Fund.

On the other hand, industry players have said that there has been a slight increase in international oil prices as world markets open up and also due to heating demands in many cold regions. . While Arab light crude saw an increase of 4% to $ 79.3 per barrel in the outgoing fortnight, a similar trend was seen for the two most consumed petroleum products in the country.

The price of oil rose $ 2.60 to $ 83.89 per barrel in the Gulf markets and that of high-speed diesel (HSD) by $ 3.21 to $ 84.07 per barrel.

Meanwhile, the Oil Companies Advisory Council (OCAC) has calculated that demand for HSD in January 2022 will remain constant at around 600,000 tonnes, but that for gasoline will decline to 650,000 tonnes from 700,000 tonnes in December 2021. Experts in the field said the national demand for diesel was almost constant at around 20,000 tonnes per day, with up to 90% coming from the transportation sector.

Despite the holiday season and the massive movement of local tourists to the interior of the country, the industry estimates a drop in gasoline consumption for January.

Jet fuel prices have also been increased and there is an increase in its consumption, which will increase further during the month of January. Demand at Karachi Airport is estimated to increase by 20% to around 600 tonnes per day.

Meanwhile, Ogra has reduced the base price of liquefied petroleum gas (LPG) from Rs 5,033 to Rs 128,433 per tonne. The final consumer price after adding all taxes, duties and distributor profit margins will be Rs 196.68 per kilogram for January.

Industry players criticized the government for what they called ill-planned LPG-related policies. “LPG is the most expensive product in the fossil fuel sector, and it is mainly consumed by rural populations who do not have access to piped gas, but the government still charges over 33,246 rupees per tonne,” he said. said Ali Haider, senior vice president of the Pakistan LPG Distributors Association.

Posted in Dawn, January 1, 2022

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