Interim PM Kakar faces fuel price hike ‘test’ today

ISLAMABAD: Caretaker Prime Minister Anwarulhaq Kakar on Tuesday is expected to announce one of his first major executive decision, pertaining to the fortnightly revision of prices of petroleum products.

See more: Petroleum prices likely to rise soon

How is fuel price determined?

While determining the price, Oil and Gas Regulatory Authority (OGRA), the regulator, considers two factors – the average exchange rate of the Pakistani rupee against the US dollar and the average oil prices in international market over the last two weeks.

Based on OGRA’s price determination, the Secretary Finance briefs the Prime Minister (PM) who then accords approval to the proposal.

After the premier’s approval, Finance Ministry notifies the new prices.

Earlier this month, the government raised petrol and High Speed Diesel (HSD) prices by Rs20 per litre, as part of its commitments to the International Monetary Fund (IMF).

The government has imposed a petroleum levy of Rs55 per litre on petrol and Rs50 per litre on HSD.