Petrol and Diesel prices increased by Rs 9.99 — Rs 6.18 per liter
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KARACHI: The prices of petroleum products — petrol and high-speed diesel (HSD) — increased up to Rs 9.99 and Rs 6.18 per litre, respectively, with effect from July 16 2024. The government has increase the petroleum products prices in Pakistan mainly because of higher global oil prices.
Sources said the prices of petrol and HSD had increased in the international market by about $4.4 and $2 per barrel, respectively, in the last fortnight. Depending on final calculation and existing tax rates, the price of petrol is projected to rise by Rs 9 per litre and that of HSD by Rs 6 per litre.
The government has jacked up the maximum limit of petroleum development levy (PDL) to Rs 70 per litre in the Finance Bill to collect Rs 1.28 trillion in the current fiscal year against Rs 960 billion collection during the previous year, almost Rs 91 billion higher than the Rs 869 billion budget target.
During the current fortnight, import premiums on both petrol and HSD have remained unchanged at $9.60 and $6.50 per barrel, respectively.
On the other hand, the rupee depreciated by about 17 paise against the dollar during the fortnight.
The ex-depot prices for petrol and HSD, thus, stand at Rs 275.60 and Rs 283.63 per litre, respectively.
Between May 1 and June 15, petrol and high-speed diesel prices were reduced by about Rs 35 per litre and Rs 22 per litre, respectively.
The government currently charges about Rs 77 per litre tax on both petrol and HSD. Although the general sales tax (GST) is zero on all petroleum products, the government charges Rs 60 per litre PDL on both products, which normally impacts the masses. The government is also charging about Rs 17 customs duty on a litre of petrol and HSD, irrespective of their local production or imports.
Petroleum and electricity prices have been the key drivers of high inflation. Petrol is mostly used in private transport, small vehicles, rickshaws and two-wheelers.
On the other hand, an increase in diesel’s price is considered highly inflationary as it is mostly used in heavy transport vehicles and particularly adds to the prices of vegetables and other eatables.
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