ISLAMABAD: Along with the recent rise in global oil prices, the depreciation of the rupee against the US dollar – which has impacted the exchange rate by Rs 12 – has prompted the Oil and Gas Regulatory Authority (OGRA) to raise prices. An increase is likely to be recommended. JEE News reported Tuesday.
From September 1, 2023, the price of petrol is expected to increase by Rs. 12 per liter while the price of diesel is expected to increase by Rs. 14 and 83 paise per liter.
“This will lead to further increase in inflation which will make people’s lives more miserable. At present the inflation rate is at 28 per cent,” a senior official of the power ministry told JEE News.
“However, the government, which is already under tremendous pressure due to nationwide protests over high electricity bills, may reduce or stop the hike”.
But doing so will put the caretaker government in dire straits.
“If the government does so, it will be considered that the caretaker government has defaulted on the IMF terms and conditions for its $3 billion Standby Agreement (SBA) loan under which the government has lowered the prices of POL products. It is bound to go through the climb.
The dollar has touched Rs 301.75 in the interbank market while it is selling at around Rs 319 in the open market.
According to the data, the price of petrol has already increased by Rs 37.50 and diesel price by Rs 40 per liter in the month of August.
“However, the authorities last time fixed the prices of POL at Rs 287 per dollar and now they have decided to calculate the prices of POL products at Rs 299 from September 1, 2023.
“The major impact of the Rs 12 exchange rate will be reflected in the increase in POL prices.
“LC confirmation charges, which have been increased by 10 per cent, are also included in the prices of PSO’s petroleum products,” a power ministry official told JEE News.
“The current price of Mogas at Rs 290.45 per liter may increase by Rs 12 per liter to Rs 302.45 per litre. Similarly, the price of HSD which is Rs 293.40 per liter is also likely to increase by Rs 14.83 per litre. to Rs.308.23 per litre.
The price of diesel is very expensive as it is mostly used in heavy transport vehicles, trains and agricultural engines like trucks, buses, tractors, tubewells and threshers and especially increases the prices of vegetables and other food items. .
On the other hand, petrol is also mostly used in private transport, small cars, rickshaws and two-wheelers and this directly affects the budget of middle and lower middle class citizens.
