After a slight reduction in petrol prices a day ago, the government has again increased the prices of petrol, high-speed diesel and kerosene for July 22. The Oil and Gas Regulatory Authority (OGRA) has issued a notification saying that the new prices will come into effect from July 22.
The new retail price of petrol has been hiked to Rs 320.73 per litre from the previous price, while high-speed diesel would be sold at Rs 367.21 per litre, up from Rs 359.06. Likewise, the rate of kerosene has been raised by Rs 6.78 per litre, and the new rate has been set at Rs 289.37 per litre.
The development has come at a time when the government has recently changed the method of determining the prices of petroleum products and put in place a system of daily review of prices. Under the new policy, OGRA will set prices based on the formula it has established, and the approval of the Prime Minister or the Federal cabinet of the Republic will no longer be necessary for the announcement of the price for the day. The final prices will still be observed on Saturdays and Sundays, though.
It can be recalled that the petrol price was decreased by 35 paise per litre and the high-speed diesel (HSD) price was increased by Rs 5.71 per litre on July 21 as part of the notification. A day later, petrol, diesel and kerosene prices have been hiked once again as per the new notification.
Conversely, the Petrol Pumps Association has said it will start contemplating shutting petrol stations throughout the country if its demands are met. But there is no immediate official acknowledgement at the government level of this news, and the concerned authorities have said to keep a watch on the situation.
With the new pricing scheme for daily prices, the impact of fluctuations in the global price of crude oil and import costs could reach the local market faster, which could mean that consumers may experience relatively frequent price changes in fuels, according to experts.