Govt announces massive hike in petroleum products

The government on Tuesday announced a major hike in prices of petroleum products citing an increase in the prices of crude oil in the international market.

“The prices of petroleum products are showing a drastic increase in the international market and presently are at the highest level since 2014. Despite the unabated increase since the beginning of the year, Prime Minister Imran Khan deferred the last review of petroleum products’ prices on January 31, 2022, and advised against the summary of OGRA,” said the finance division in the latest statement.

According to a government notification, petrol price has gone up by Rs12.03, high speech diesel by Rs9.53, Kerosene oil by Rs10.08, light diesel by Rs9.43.

Product Existing price w.e.f 01-02-2022 New Prices w.e.f. 16-02-2022
Increase / (-) Decrease
MS (Petrol)
147.83 159.86 +12.03
High Speed Diesel (HSD)
144.62 154.15 +9.53
Kerosene (SKO)
116.48 126.56 +10.08
Light Diesel Oil
114.54 123.97 +9.43

The finance division stated that the government had also levied 0% sales tax and reduced the levy to provide “relief” to the consumers against budgeted.

The finance division said that the “relief” had led the government to bear a revenue loss of around Rs 35 billion fortnightly.

“In the fortnightly review of Petroleum Products’ prices, the prime minister has considered the recommendation to increase the prices of petroleum products in line with a change in the international oil prices. Despite the increase in the prices of petroleum products, petroleum levy and sales tax have been kept to the minimum,” said the notification.