In response to the price change summery by Oil and Gas Regulatory Authority (OGRA), the finance ministry have made following changes to the prices of different petroleum items.
Petrol price was decreased by Rs. 0.25 per litter, Diesel Price was decreased by Rs. 2.40, light speed Diesel price was decreased by Rs. 2.90 and kerosene oil price was decreased by Rs. 0.90 or 90 Paisas Per litter.
Hence after all these changes the petroleum prices of December 2019 were set to figures as follows in Pakistani Rupees.
Light Speed Diesel: 82.43
Kerosene Oil: 96.35
What do you feel about these recent petroleum price changes?, do not forget to share your thoughts in comment section below.
Few days back while recommending the petroleum prices for March 2016 OGRA (Oil and Gas Regulatory Authority), had recommended the 8.48 Rs decrease in price of petrol, which eventually have been approved by government today. The new price of petrol is set to Rs. 62.77 per liter. The price of High Speed Diesel (HSD) was also reduced by 4.67 per liter by setting it to the Rs. 71.12 per liter.
Light Diesel price was also Reduced by Rs. 1.97. Also, OGRA had recommended the increase of Rs. 1.66 in prices of Kerosene oil, which was not approved, resulting in no change in prices of Kerosene oil.
Reduction of all the prices was resulted by dropping prices of petroleum products in the international market. Normally, OGRA announces the change in petroleum prices, however, this time as mostly the prices were being reduced, so Prime Minister Nawaz Sharif did not let go the opportunity to announce the price drops. He also mentioned that Pakistan is only country in region which is passing the drop in fuel price to the masses. But in reality, in percentage government of Pakistan is taking much more tax on every litter than they were taking, when the prices were on peak.
As per trend, last few months as well, the petroleum prices declined in international market. Pakistan’s Oil and Gas Regulatory Authority (OGRA) also recommended that Pakistan can reduce petrol and diesel prices by at least six rupees. Now OGRA is main authority which recommends the petroleum prices in Pakistan, so when it is say we can reduce price by 6 rupees or more, we absolutely have margin to do that.
Normally, when OGRA decides a price and it goes to Prime Minister office for approval, it is accepted as it is. But this time our beloved PM Nawaz Sharif chose not to pass on the benefit to people of Pakistan, so instead of accepting the OGRA’s price reduction of 6 Rupees and few Paisas to petrol and diesel, he just chose to reduce price by only 3 rupees for both.
People already were giving enough sales tax on petroleum, so this stunt by PM resulted in increasing the already excessive sales tax on petroleum prices. So people are forced to give about 27% of sales tax on petrol when the standard rate is nothing more than 17%.
Most bothering thing is these politicians, like the ones in power do not want to pass on any relief to people of Pakistan, even when they can. Along with other ever growing taxes in PMLN (Pakistan Muslim League – Nawaz) Era, not choosing to go with recommended fuel prices will put further burden on People of Pakistan. Fuel prices impact prices of each and every thing in the country and such decision do not bring any good to people’s lives.
Today I came across a video which is making quite a buzz out there. It is story of lawyer who used to travel in his private car earlier. But not few months ago when CNG (Compress Natural Gas) was closed down, according to him he ditched his car and Purchased a motor bike to save the traveling expenses.
Now as the petrol shortage prevailed in all cities of Punjab and overall in Pakistan, he was not able to get petrol for his motor bike. He downgraded to a bicycle, to save himself the headache of going after the petrol. He also advised other to take this step, which according to him is a healthy step and will save people the headache of short petrol.
Its now days after petrol shortage started, the queues of People waiting for the fuel are getting longer and longer but more than half of petrol pumps are now closed. Other ones are only providing the petrol worth of just 500 to 250 Rupees per vehicle. Shortage started when PSO was denied by suppliers because it did not had payed for the petrol it had got earlier on credit as PSO (Pakistan State Oil) had exhausted its all credit lines due to non payment. Non payment due to circular debt 200 billion rupees. Much of that was created due to non payment of govt departments to PSO for the petrol they had acquired.
Most notable non payment of this kind is attributed to power sector of Pakistan which had to pay over 70 billion to PSO but held the payment.
Now here we are, the whole nation caught in shortage of petrol only because govt organizations didn’t done job. The very job which is reason for their existence. It is not just few cities of Pakistan, the most areas of most hit province Punjab face same situation.
This following Samma TV DailyMotion video shows the situation of one of affected cities.
Government which had promised people to keep supplying the natural gas in the winter of 2014 – 2015 and ahead with the import of Liquid Natural Gas, has failed to do so as well. Natual Gas is also used in vehicles in Pakistan as CNG (Compressed Natural Gas). CNG is also closed in the country now only due to mismanagement of government of Pakistan which had resulted in shortage of Natural Gas. Now all that load as well is also on the petrol supply, here again the concerned departments does not have anticipated the increase in usage of petrol due to CNG closure, ahead of time. Its now again normal people who have to suffer only just becuase the party in power did not done their job well. If you are still confused, I am talking PML-N here.