Petrol Price Set to Rise by Rs 2.5 per Liter: Additional Funds to be Transferred to Escrow Accounts
Islamabad: The government is planning to increase the price of petrol by Rs 2.5 per liter, with the additional amount being transferred to escrow accounts. These accounts are intended to provide financial support for the upgrade projects of local refineries. The price hike is expected to be temporary and will remain in effect until the next budget.
During the meeting of the Strategic Investment Framework Committee (SIFC), it was directed that the Oil and Gas Regulatory Authority (OGRA) should conduct a detailed review of the potential impacts of the price increase and present a final report to the Petroleum Division for approval by the Economic Coordination Committee (ECC).
However, Pakistan’s largest refiner, PARCO, which holds a 48% share in the market, has expressed concerns over the increase, calling it a “temporary solution.”
Additionally, it was agreed that the Petroleum Division will present a workable plan within a week for the upgradation of local refineries, estimating a requirement of $5-6 billion. This move is aimed at bringing innovation to the country’s energy sector and enhancing domestic refining capabilities.
