ISLAMABAD: Yet another shocking breaking news: the government increased the prices of petroleum products from 1.8 to 11.8 percent with immediate effect from May 1, 2011 (today).The Oil and Gas Regulatory Authority (Ogra) has increased the price of petrol by Rs4.85 per litre (5.8 percent) from Rs83.56 to Rs88.41 per litre and kerosene by Rs5.60 per litre (6.7%) from Rs84.10 to 89.70 per litre. The massive increase in kerosene in particular hits hardest the people residing in far-flung areas where no piped gas, including LPG, is available and they are compelled to use kerosene as fuel.
The government has raised the price of high speed diesel by Rs4.42 per litre (4.8 percent) which will have a direct inflationary impact as it will further increase the transportation cost of all goods in the country.
The price of HOBC (High Octane) has surged by Rs.1.80/liter from Rs98.12 to Rs99.92 per litre whereas the price of light diesel has increased by Rs9.32 per litre (11.8 percent) from Rs78.98 to Rs88.30 per litre.
Dr Hafeez A Pasha, former deputy chairman and advisor to prime minister on Finance has already expressed fears that the biggest challenge for the government is to control the inflation, which is expected to touch 15.5 percent by June 30, 2011. The government raised the POL prices in order to avoid additional burden of Rs12 billion on national treasure given the inflation in oil prices in international market.