The Oil and Gas Regulatory Authority (Ogra) on Saturday proposed an increase of Rs2.10 per litre in the price of high speed diesel (HSD) due to fluctuation in global oil prices effective from August 16, 2021.

Earlier, government had not increased the price of high speed diesel (HSD) from August 1, 2021 and kept the rate unchanged at Rs116.53 per litre.

An official of the Petroleum Division said that price of high speed diesel could jump up to Rs118.63 per litre if the government decides to increase its price.

Mostly, Agriculture and transport sectors use high speed diesel. Therefore, increase in its price poses a direct impact on these two sectors on account of inflation.

On the other hand, the regulator had recommended an increase of Rs0.25 per litre for petrol price.

Petrol is an alternate fuel of CNG and is used in vehicles. Following diversion of CNG retail outlets from indigenous gas to imported gas in Punjab province, the demand for petrol has increased.

Therefore increase in its price will also have a direct impact on middle class that use small cars and motorcycles.

Earlier, the government had increased price of petrol by Rs1.71 per litre following fluctuation in global oil prices effective from August 1, 2021.

The price of kerosene oil may go up Rs0.81 per litre from August 16. Earlier, the government had hiked price of kerosene oil by Rs0.35 per litre. Kerosene oil is used in remote areas like the northern parts of the country for cooking purpose where LPG is not available.

Earlier, the government had not made any increase in price of light diesel oil (LDO) from August 1.This fuel is used by industry.

The regulator had now proposed to hike price of light diesel oil by Rs1 per litre.

The current price of petrol stands at Rs119.80 per litre. HSD is available at Rs116.53 per litre. LDO is currently being sold at Rs84.67 per litre and kerosene oil Rs87.49 per litre. The government is currently charging two types of taxes that include general sales tax and petroleum levy on petroleum products.

Published in The Express Tribune, August 15th, 2021.

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