Price of petrol raised by Rs2.61 per litre, kerosene by Rs3.10.

ISLAMABAD -- The government on Tuesday increased fuel prices for January, raising the petrol price to Rs116.60 per litre with the increase of Rs2.61, while appAroving the recommendations made by the Oil and Gas Regulatory Authority (Ogra).

A notification issued by the finance ministry says that the new rate for the most widely used fuel consumed in large vehicle engines and generators - High Speed Diesel (HSD) - has been raised by Rs2.25 to Rs127.26 per litre.

An official of the state-owned oil company PSO said that January was not the month of heavy consumption of diesel and petrol in the country as there was limited activity in the farm sector while the movement of trucks too was restricted in the wake of occasional fog at highways.

Similarly, the price of Light Diesel Oil (LDO) consumed in certain engines used by tube-wells and mills in rural areas has been raised by Rs2.08 to Rs84.51 per litre.

While kerosene price has jumped to Rs99.45 per litre with the increase of Rs3.10, its demand increases several times during winter due to shortage of natural gas and the increase in the price of liquefied petroleum gas (LPG).

At the same time, the government has increased LPG prices as the Oil and Gas Regulatory Authority (Ogra) issued a notice on Tuesday showing an increase of 23.54 per kg and raising the LPG rate to Rs151.82 per kg.

The Ogra notification states that the LPG producer rate with the combination of 40 per cent propane and 60pc butane is Rs90,092.65 per tonne, compared with Rs69,971.31 per tonne in December 2019.

The other components of LPG prices are marketing/distribution margin - Rs35,000 per tonne - and petroleum levy Rs4,669 per tone - and the consumer price results at Rs129,761.65 per tonne, as 17 percent GST is charged at consumer price. So the final LPG rate for January is Rs151,821.13 per tonne or Rs1,791.48 for each cylinder of 11.8 kg.

Apart from the consumer fuels, the prices of aircraft fuels too have been raised, which will have cost impact of civil aviation as well as the aircrafts of armed forces including helicopters.

KElectric

Meanwhile, the power rate for K-electric has been jacked up by Rs17.69 per unit from the existing average sale rate of Rs.12.81/kWh, however the 'consumers will not pay the new charges', the company says.

The decision to increase the power rate has been worked out in terms of fuel adjustment charges for 11 quarters or 33 months by the National Electric Power Regulatory Authority (Nepra), as...