Pakistan govt hikes fuel prices: Petrol at PKR 293.94, diesel at PKR 290.38 per litre

World Tuesday 16/April/2024 07:19 AM
Pakistan govt hikes fuel prices: Petrol at PKR 293.94, diesel at PKR 290.38 per litre

Islamabad : The Pakistani government announced an increase in the price of petrol by Pakistani currency (PKR) 4.53 per litre and that of high-speed diesel (HSD) by PKR 8.14 per litre for the next fortnight ending April 30, Dawn reported on Monday.

In the latest price revision, the petrol price was increased to PKR 293.94 per litre from PKR 289.41.

Additionally, the HSD price was increased to PKR 290.38 per litre for the next 15 days, compared to PKR 282.24 over the past fortnight, Dawn reported.

The decision, announced in a notification from Pakistan's finance ministry, said that price variations were worked out by the Oil and Gas Regulatory Authority based on price variations in the international market.

Petrol is mostly used in private transport, small vehicles, rickshaws, and two-wheelers and has a direct bearing on the budgets of the middle and lower-middle classes.

Dawn reported that most of the transport sector runs on HSD. Its price is considered inflationary as it is mostly used in heavy transport vehicles, trains and agricultural engines like trucks, buses, tractors, tube wells and threshers and particularly adds to the prices of vegetables and other eatables.

The government did not announce the prices of kerosene and light diesel oil (LDO). Kerosene is mostly used by unscrupulous elements to mix with petrol and, to some extent, for lighting in very remote areas, while LDO is consumed by flour mills and a couple of power plants.

Earlier, informed sources said the prices of petrol and HSD had increased in the international market by about USD 4 and USD 4.50 per barrel, respectively, during the last fortnight, before the latest escalation. The price of petrol was projected to be higher by PKR 2.50 to PKR 2.80 and that of HSD to go up by PKR 8 to PKR 8.50 per litre, Dawn reported.

Interestingly, the import premium on petrol has dropped by almost 21 per cent to USD 10.7 per barrel over the last fortnight when compared to USD 13.50 in last few days of March and the rupee strengthened by about PKR 0.40 against a dollar to PKR 278.20. The net impact is estimated to be about PKR 2.80 per litre increase in petrol price from the existing rate of PKR 289.41.

The HSD price, on the other hand, was up in the international market and its import premium paid by the benchmark Pakistan State Oil remained unchanged at USD 6.50 per barrel.

Dawn reported that although the general sales tax (GST) is zero on all petroleum products, the government charges PKR 60 per litre petroleum development levy (PDL) on both products. The government also charges about PKR 19-20 per litre customs duty on petrol and high-speed diesel.

The PKR 60 per litre PDL on petrol and HSD is the maximum permissible limit under the law.

The government set a budget target to collect PKR 869 billion as a levy on petroleum products during the current fiscal year under the commitments made with the International Monetary Fund.