On Prime Minister Shahbaz Sharif’s orders, the Federal Government has decided to raise petrol prices in Pakistan starting June 3, 2022, according to Finance Minister Miftah Ismail during a news conference in Islamabad on Thursday. The price of petrol, high-speed diesel (HSD), and light diesel oil (LDO) would all be increased by Rs. 30 per liter, while the price of kerosene oil will be increased by Rs. 26.38 per liter, according to the notification. The new petrol prices in Pakistan will take effect at 12 a.m. on June 3, 2022.
This will increase the price of petrol in Pakistan to Rs. 209.86 per liter from the previous rate of Rs. 179.86 per liter, the price of high-speed diesel (HSD) to Rs. 204.15 per liter from the previous rate of Rs. 174.15 per liter, the price of kerosene oil to Rs. 181.94 per liter from Rs. 155.56 per liter, and the price of light diesel oil (LDO) to Rs. Petrol Price in Pakistan 2022 February was relatively lesser as compared to the current prices.
Oil and Gas Regulatory Authority OGRA
The Oil and Gas Regulatory Authority (OGRA) was established by the Pakistani government in 2002 to regulate the country’s petroleum sector. OGRA creates a complete summary to propose changes in gasoline prices in Pakistan based on demand and supply, as well as the use of many other vital resources.
This summary can only be applied if it is accepted by Pakistan’s Prime Minister; otherwise, it would be refused and the prices will remain the same. Negotiations between the government and the OGRA are also a crucial aspect of the pricing process.
Change in Petrol Price Today – 3 June 2022
- Product Current Price (PKR) New Price (PKR) Change (PKR)
- Petrol 179.86 209.86 +30
- Kerosene Oil 155.56 181.94 +26.38
- Light Diesel Oil (LDO) 148.31 178.31 +30
- High-Speed Diesel (HSD) 174.15 204.15 +30
Despite the rise in petrol prices in Pakistan, Finance Minister Miftah Ismail stated that the government was still losing money on these goods. “However, we are losing Rs8 on light diesel, Rs9 on petrol, and Rs23 on high-speed diesel,” he added, adding that the only item in which the government was not losing money was kerosene oil.
Types of Fuel in Pakistan
The type of fuel required in the engines is determined by their design. These are following Pakistan’s refined petroleum products.
- Liquid Petroleum Gas (LPG)
- Compressed Natural Gas (CNG)
- Petrol (Super and Hi-Octane)
- Diesel (High Speed and Low Speed)
In Pakistan, highly speedy Diesel and petrol are the most use petroleum fuels. As a result, the government obtains a significant amount of money from these two petroleum products.
Pakistani Petroleum Quality:
In the past, Pakistan received low-quality gasoline compared to other countries. Pakistan began importing high-quality gasoline with a higher Research Octane Number RON, 92, in 2016. Oil firms are now refining RON or 97petrol.
De-Stabilization of Petrol Price in Pakistan
Since the COVID-19 crisis erupted throughout the world, petrol prices in Pakistan have been volatile. The Oil and Gas Regulatory Authority (OGRA) is in charge of keeping petrol prices stable in Pakistan. For the past few months, OGRA has been changing the petrol rates in Pakistan every 15 days. The cost of gasoline varies from one place to the next.
The price of petroleum products in Pakistan is directly affecting by the worldwide transformation of oil and gas. However, there is a slew of local variables at play in Pakistan’s instability of petrol prices. Petroleum resources, economic conditions, and an unstable political environment are the most important local factors. As a result, gasoline prices fluctuate often.
Euro Fuel Emission Standards in Pakistan
In Pakistan, the Euro V Emission Standards have been formally adopt. These requirements are more beneficial to improving car engine performance. As a result, pollution will decrease, and the future environment will be safe and green.
Pakistan was still implementing Euro II Emission Standards in 2012, even though they had since expired. Pakistan has now advanced to Euro V Standard in 2020, skipping Euro III and IV. Since 2009, other countries have been using the Euro V Standard. Since 2014, the Euro VI Emission Standard has been in effect, with the Euro VII Emission Standard planned to be implemented by 2025.
Hi-Octane Petrol Price in Pakistan
In Pakistan, the Oil and Gas Regulatory Authority (OGRA) is unable to keep Hi-Octane pricing stable. As a result, the price of Hi-Octant in Pakistan varies from one petrol station to the next.
High Octane petrol price in Pakistan today is almost not under the control of the govt. It is increasing day by day.
Diesel Prices in Pakistan
The current USD price of high-speed diesel in Pakistan is $1.02 per liter. Current High-Speed Diesel price in Pakistan is 204.15 Pakistani Rupees per Liter. The current Light Speed Diesel price in Pakistan is 1.02 USD per Liter. The current Light Speed Diesel price in Pakistan is 204.15 Pakistani Rupees per Liter. Diesel Price in Pakistan Today 2022 increasing very rapidly and still, there is a possibility of an increase in the price of petroleum.
Many variables influence the price of petroleum in a given nation or area. Some notable considerations are the cost of crude oil (the natural source of all petroleum by-products), refining, distribution and marketing expenses, earnings, and fuel taxes.
Governments, particularly in developing nations like ours, subsidize gasoline costs to reduce the financial burden on the general population, depending on their different economies’ financial capacity.
The federal government of Pakistan provides millions of rupees in subsidies to keep gasoline costs stable and bring assistance to the average man. However, there is still no clear strategy for providing gasoline subsidies in the country.
China, India, Bangladesh, Indonesia, and Malaysia, for example, have well-developed subsidy mechanisms and administration systems. Fuel subsidies also include in several of these nations’ annual financial budgets, something our government should do as well.