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According to media reports and sources, petrol prices may go up to Rs11.95 per liter from January 16, 2021. The sources have stated that Oil and Gas Regulatory Authority (OGRA) has recommended this increase in a summary to Ministry of Finance.

The sources further claimed that OGRA has also recommended a hike of Rs9.57 per liter in diesel price. However, the Ministry of Finance, headed by Dr. Hafeez Sheikh, would take the final decision. Furthermore, the ministry will also consult with Prime Minister Imran Khan.

Earlier Hike in Petrol Prices: 

On December 30th, the federal government increased the petrol price by Rs3 per litre. The new prices were implemented on January 1, 2020. According to an announcement by Ministry of Finance, the prices of all petroleum products were increased from 3 percent to 8 percent. 

As per the notification, the prices of High-Speed Diesel (HSD) had also been increased by Rs3. Meanwhile, the rates of Kerosene Oil and Light Diesel Oil (LDO) were jacked up by Rs5, respectively.

In doing so, the government had taken a significant revenue hit, as it reduced its Petroleum Levy (PL). The ministry said that PL on petrol had been reduced by Rs4.50 per litre and about Rs2.51 per litre on HSD. Meanwhile, it reduced the Levy on kerosene oil by 55 paisa per litre and increased by about 65 paisa per litre on LDO.

Current Prices: 

After the hike, the new price of petrol is Rs103.69, against its old rate of Rs100.69. Meanwhile, the new price of HSD is Rs108.43, against Rs105.43. Meanwhile, the current rates of kerosene oil and LDO is Rs70.29 and Rs67.86, respectively.

It is pertinent to mention that earlier government used to revise petrol prices after a month. However, the incumbent decided to do it after every 15 days.

What are your thoughts about this news? Do you think, the government accept the summary by OGRA?