Amid economic turmoil, Pakistan hikes petrol price by Rs 5, diesel sees Rs13 hike

Islamabad: Pakistan has hiked the price of petrol and high-speed diesel (HSD) by Rs 5 and Rs13 per litre, respectively. The new prices will be effective from Thursday. With the latest revision, petrol cost PKR 272 per litre whereas high-speed diesel (HSD) will sell for PKR 293 per litre in the cash-strapped nation. The cost of kerosene has jumped to Rs190.29 per litre while the price of light diesel oil (LDO) remains Rs184.68 per litre. “In the last fortnight, Platts Singapore prices registered an increase. This along with a depreciation of the country rupee has resulted in an increase of POL (petroleum, oil and lubricant) products in Pakistan," the Finance Division said in a statement issued on Wednesday. It said that as a result, the price of petrol and diesel had increased by Rs5 and Rs13, respectively.

“The increase in the price of kerosene had been kept at Rs2.56 “by reducing government dues on it. The LDO has been kept constant by adjusting government dues as well,” Down quoted the press release as saying. Finance Minister Ishaq Dar had on February 28, announced a reduction in the price of petrol by Rs5 per litre while keeping the price of HSD unchanged at Rs280 per litre. Pakistan’s oil industry is in serious trouble in arranging crude oil and petroleum products owing to foreign exchange constraints and prevailing product pricing, particularly following the recent currency depreciation and increase in the central bank’s policy rate, media reports said. Reporting these challenges to the government, the Oil Companies Advisory Council (OCAC) – an association of more than three dozen major oil marketing companies (OMCs) and refineries – warned of a major disruption to the already fragile supply chain. In a communication to the ministers for finance and energy, the governor of the State Bank of Pakistan (SBP) and the chairman of the Oil and Gas Regulatory Authority (Ogra), the association has sought an urgent engagement to address the “severe impact of the recent depreciation of the rupee”. The oil industry also called upon the government to ensure that the banking sector enhanced limits for oil companies and refineries, enabling them to manage the impact of increased oil prices and rupee depreciation that was critical for the survival of the sector and the integrity of the POL supply chain. Read all the  Latest News ,  Trending News ,  Cricket News ,  Bollywood News , India News  and  Entertainment News  here. Follow us on  Facebook,  Twitter and  Instagram.