Pakistan could see petrol, diesel prices hiked by over ₹100 per litre soon

Pakistan is likely to witness a massive hike in petrol and diesel prices. From Saturday, the price of these fuel could be increased at unprecedented level as the country's economy continues to struggle. The country's oil marketing companies have proposed that the price of petrol and diesel need to go up by Pakistani ₹83.5 and ₹119 per litre respectively from tomorrow.

The Oil and Gas Regulatory Authority (OGRA) has proposed the new government of Pakistan to increase the fuel prices massively by up to ₹83.5 per litre on petrol and ₹119 on diesel. Pakistan's new Prime Minister Shehbaz Sharif, who took over reigns from Imran Khan recently, has said the country's economy had stagnated resulting in high inflation.

The Authority regulating the oil and gas sector in Pakistan has sent a summary to the Petroleum Division proposing massive price hike. Proposed hike was made on the basis of the 70 per cent of GST and ₹30 per litre levy, according to Pakistani news agency ARY News.

Currently, for petrol and diesel, the prevalent levy in Pakistan stands at ₹30 per litre and 17 per cent of GST. The authority has suggested enforcing a ₹83.5 per litre hike on petrol on the basis of full levy and taxes, whereas, it was recommended to increase ₹119 per litre on diesel.

For other petroleum products, a Rs77.31 hike was proposed for light diesel, Rs36.5 on kerosine oil and Rs38.89 on light diesel at the full tax rate and levy.

A final decision on the OGRA summary will be taken by the finance ministry after consulting Prime Minister Shehbaz Sharif, said sources.