Petroleum prices likely to hike again on Sept 15

Islamabad: The petroleum prices are likely to be hiked again on September 15 as the Economic Coordination Committee (ECC) approved increasing the margin of petroleum dealers and oil marketing companies (OMCs) on Thursday.

The sale margin for petrol and diesel will increase by Rs3.5 per litre, as allowed by the interim government.

The decision was made today during a meeting of the Economic Coordination Committee (ECC), which was presided over by interim finance minister Shamshad Akhtar. 

The committee approved raising the margin for dealers and OMCs who sell petrol and diesel.

The margin for diesel and petrol for OMCs would be raised by Rs1.87 per litre. On September 15, the sale margin for OMCs will be raised by Rs0.47 per litre in the initial phase.

Additionally, a margin increases of Rs. 64 was granted for the sellers of petrol and diesel. The margin increase will, however, be introduced gradually. On September 15, dealers will be subject to a Rs0.41 per litre price increase as part of the first phase.

The ECC also authorized a brief to develop a restructuring strategy for Pakistan International Airlines (PIA), the country's flag airline. The report for a Rs1.3 billion grants for the national airline was denied by the committee.

It is important to note that the PIA asked for payments to the Federal Board of Revenue (FBR) to be delayed.

The committee instructed the finance minister and the State Bank of Pakistan (SBP) to help the national airline create its financial restructuring plan.

A Rs. 40 billion supplemental allocation for the defense ministry was authorized by the ECC.

Earlier, the interim government on Friday increased the price of petrol by Rs 14.9 per litre, according to a notification issued by the Finance Ministry.

According to details, the price of petrol has reached to Rs305.36 per litre with increase of Rs 14.9 per litre.

Meanwhile, the price of high-speed diesel (HSD) has been increased by Rs18.44 per litre to Rs311.84.

Notably, several fuel stations across the country were shut down a couple of hours before anticipated hike.

The surge in fuel prices has compounded the misery of people already struggling with runaway inflation.

It would mean higher transportation costs, increased inflation, reduced economic activity and impact on the poor and vulnerable.