Finance Minister announces new petroleum prices for next fortnight

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ISLAMABAD, Jan 15 (APP): The government on Sunday decided to
increase the prices of MS 92 RON Petrol by Rs 1.77 to Rs 68.35 per
liter and that of Hi Speed Diesel (HSD) by Rs 2.00 to Rs 79.22 per
liter with effect from January 16 till January 21, 2017, Minister
for Finance Senator Mohammad Ishaq Dar said.
In a statement here, the finance minister said the price of
Petrol had been increased in line with Oil and Gas Regulatory
Authority (OGRA)’s recommendation, while the price of HSD was being
increased by cutting almost half of the increase recommended by
OGRA.
He said that Ministry of Petroleum and Natural Resources and
OGRA had recommended an increase of Rs 1.77 per liter in the price
of MS 92 RON Petrol, Rs 3.94 per liter in the price of High Speed
Diesel (HSD), Rs 14.31 per liter in the price of Kerosene Oil and
Rs 10.11 per liter in the price of Light Diesel Oil (LDO), with
effect from January 16, 2017.
The Minister stated that, in line with the Prime Minister’s
instructions to provide maximum relief to the common man, and
keeping in view that Kerosene Oil and LDO is used by the low income
segments of the country’s population, it has been decided to
maintain the prices of Kerosene Oil and LDO at the current level
till January 31, 2017.
This decision has been taken also keeping in view the fact
that Kerosene Oil caters to the energy needs of the poor, especially
in the winter season.
The Finance Minister highlighted that, in order to maintain
stability, prices have been maintained since April 2016 despite an
increase of around 43 per cent in international oil prices during
2016.
He said the government has been absorbing the negative
financial impact due to the government’s decisions to not pass on
price increases to the end consumers.
He highlighted that, prior to today, only partial increase in
MS Petrol and HSD was passed on to the end consumers for the month
of December 2016 only, compared to OGRA’s recommendations.
The Ministry of Finance will bear a revenue loss of
approximately Rs 2.75 billion as a result, of this decision to not
pass on the actual increase in petroleum products’ prices to the
people of Pakistan.