After the depreciation of the rupee against the dollar, Finance Minister Ishaq Dar on Sunday announced that the price of petrol and diesel will be increased by Rs 35 from today.
In a televised address, Dar also announced an increase of Rs 18 in the prices of kerosene and light diesel oil.
The rise comes after the rupee hit historic lows against the dollar following the removal of an unofficial cap on the greenback.
After the devaluation of the local currency, there was widespread speculation that the government might hike prices by more than Rs 80.
Amid such rumours, people started a rush at petrol stations with the Oil and Gas Regulatory Authority (OGRA) advising people to stop spreading misleading and false information.
| Commodity | Existing prices w.e.f 16.01.2023 | New prices w.e.f 29.1.2023 (11am) | Increase/Decrease (in rupees) |
| Petrol | Rs214.80 | Rs249.80 | +35 |
| Diesel | Rs227.80 | Rs262.80 | +35 |
| Kerosene oil | Rs171.83 | Rs189.83 | +18 |
| Light diesel oil | Rs169 | Rs187 | +18 |
One of the reasons for the speculation was that the government immediately increased the prices of petroleum products.
OGRA has requested Prime Minister Shehbaz Sharif and the government to implement the new rates immediately to prevent temporary hoarding and speculation related to petrol shortages, Dar said.
The minister admitted in the address that speculation created artificial scarcity in the market.
He said that we have to take into account the 11% increase in petroleum prices in the international market.
Dar said that in the last four months from October to January 29, prices were not increased even once. He added that in fact during this period the prices of petrol and diesel decreased by Rs 19 or Rs 20 respectively.
He said that the prices of kerosene oil and light diesel oil have been reduced by Rs 29 and Rs 30 respectively.
Dar said that despite the devaluation of the rupee and the rise in international prices, it was decided that the minimum price would be increased on the directives of Prime Minister Shehbaz. He hoped that the quick decision would dispel rumors of petrol shortage.
Ogra will take action against petrol pumps.
On the other hand, OGRA officials say that action will be taken against those who shut down petrol pumps in some cities.
Officials said that the licenses of those who closed the pumps will be suspended.
Officials said that the regulator is taking help from the district administration through the provincial chief secretaries in this matter.
He further said that this matter will be resolved soon.
