Petrol price increased by Rs6.72 per litre

 ISLAMABAD: Petrol price increased by Rs6.72 per litre. As on August 16, the government will raise the price of gasoline by Rs6.72 per litre, lower the price of high-speed diesel (HSD) by Rs0.51, and lower the price of kerosene oil by Rs1.67 per litre (today).

The price of light diesel oil (LDO) was raised by Rs0.43 per litre by the government. Petrol price increased by Rs6.72 per litre.

Prior to this, the coalition administration had decreased the cost of gasoline and LDO starting on August 1 by Rs3.05 and Rs0.12, respectively.

However, starting on August 1, 2022, it had increased the price of HSD by Rs. 8.95 per litre and kerosene oil by Rs. 4.62 per litre.

With the most recent announcement, the price of gasoline has gone up from Rs. 227.19 per litre to Rs. 233.91 per litre; that of LDO has gone down from Rs. 191.32 to Rs. 191.75 per litre; and that of HSD has gone up from Rs. 244.95 to Rs. 244.44.

Kerosene oil is now available at Rs199.40 per litre as opposed to Rs201.07 per litre.

The rapid depreciation of the rupee versus the dollar has previously also been a significant determinant of oil prices.

The standing of the rupee against the dollar had improved recently. In spite of this, the cost of gasoline has increased. Additionally, there had not been a significant decrease in the cost of diesel, which is largely used in the nation's transportation and agricultural sectors.

Since the HSD is mostly utilised in the transportation and agricultural industries, a decrease in its cost will directly affect how people live in terms of inflation. The price drop for HSD might help farmers whose costs of conducting business are already high due to rising power rates.

IMPACT

HSD is currently being sold for a premium price. The recent nominal price cut might not have a significant effect on the transportation and agricultural industries, which are intimately related to the operations of farmers and people.

Transport costs have already increased as a result of the rise in fuel prices, driving up the cost of goods across the nation.

Both vehicles and motorcycles run on gasoline. Compressed natural gas serves as an alternative (CNG). Due to the war between Russia and Ukraine, the price of LNG, which is used by the CNG retail shops in Punjab, has increased significantly.

Even Pakistan has been unsuccessful in obtaining LNG contracts on a spot basis as a result of the highest-ever commodity prices on the global market. Even during the previous winter season, the state-run enterprise Pakistan LNG Limited was unable to arrange the LNG shipments.

Australia has a significant gas export industry. However, a further scarcity of gas is anticipated on the world market since its regulator restricted gas exports.

Pakistan might not be able to land any contracts in this circumstance for the forthcoming winter season. As a result, commuters will also have a difficult winter.

In this circumstance, consumers in Punjab will depend more on gasoline, and a recent increase in its price would negatively affect the quality of life for individuals in the province who use automobiles and motorbikes.

In distant locations without access to liquefied petroleum gas (LPG), kerosene oil is utilised as a cooking fuel. In far-off places, such as the northern regions, the army is a major user of kerosene oil. This fuel is also used by the underprivileged in Pakistan's northern regions.