Everyone was expecting the new price hike in petroleum products from January and government has not disappointed anyone by increasing the prices from Rs3.96 per liter to Rs.6.74 per liter.
While announcing the new oil prices, the financial advisor to PM stated that no tax amnesty scheme is under consideration. He said there is not a restriction to bring foreign currency to Pakistan but if there is a significant amount the government can ask for the source.
According to the advisor, petrol price is increased by Rs.4.06 per liter and light diesel (LD) is increase by Rs.6.29 per liter. The price for high-speed diesel (HSD) is increased by Rs.3.96 per liter and for Kerosene oil by Rs.6.79 per liter.
Now the new prices after the current increase as follows:
- Petrol = Rs.81.53 per liter
- Light Diesel = 58.37 per liter
- High-Speed Diesel = Rs.89.91 per liter
- Kerosene Oil = Rs.64.32 per liter
However, the government stated that greater increase in the oil prices was recommended by Oil and Gas Regulatory Authority (ORGA). The PM approved only half of the prices recommended by OGRA on all petroleum products except the petrol price.
OGRA recommended Rs.4.05 per liter increase in petrol prices and the PM accepted that proposal and applied full increase instead of half as he did for other products.
The advisor to PM also claims that the prices of petrol are lower in Pakistan as compared to other neighboring countries including India, Sri Lanka, Turkey and Bangladesh.
The advisor also said the government will not face issues in financial needs of the country during the current fiscal year nor it will look towards International Monetary Fund (IMF) for another bailout package. The government has plans to tackle the financing needs. He also opposed minister of state for finance, that the country will raise funding from international market by issuing bonds. He categorically said that the government will not issue bonds in the international market.