The caretaker government on Saturday revised the across-the-board petroleum products prices upward by 7 percent. An Oil and Gas Regulatory Authority (Ogra) notification issued here said that from March 16.
MS (motor spirit) price per litre with Rs 4.11 increase will be Rs 62.81, HOBC with Rs 4.89 rise will go to Rs 74.77, kerosene with Rs 2.71 to Rs 41.44, HSD with Rs 2.89 to Rs 44.12 and light diesel with Rs 2.52 to Rs 38.89.
The notification said the new prices were inevitable to cut down subsidy on petroleum products. The government has so far injected over Rs 80 billion during the last eight months of the current fiscal year, the notification added. The new prices will bring down subsidy on petroleum considerably but even then it will be very small to support the sliding economy.
As oil prices in the global market have gone up to $110 a barrel, weak economies are already under pressure as surge in oil rates shows no sign of relief for the consumers. The policy-makers in Islamabad can not keep on following the policy of capping the oil prices to protect the consumers from additional burden when Pakistan's economic growth is sluggish.
The policy of passing on some impact of all-time high oil prices has to be continued until and unless its growth increases to take the hit of billions of rupees. It may be noted that Ogra in its findings had suggested to the government across-the-board increase in petroleum products rates for the fortnight to avoid further burden on the economy.
Sources said that Ogra's recommendations were supplemented by the Ministry of Petroleum and then the Ministry of Finance. These key departments were categorical in their recommendations to pass on the recent increase in petroleum products prices to the consumers till the economy sees a growth to absorb the hit of billions of rupees as subsidy on oil and other commodities.
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