For the next two weeks, concluding on April 30, the government raised the price of gasoline by Rs4.53 per litre and high-speed diesel (HSD) by Rs8.14 per litre on Monday.
The price of gasoline was raised from Rs289.41 to Rs293.94 per liter in the most recent pricing review.
In addition, the price of HSD was raised for the next fifteen days to Rs290.38 per litre, from Rs282.24 during the previous two weeks.
According to the statement from the ministry of finance, the Oil and Gas Regulatory Authority determined the price variances by analyzing price fluctuations in the global market.
The majority of small cars, rickshaws, two-wheelers, and private transportation utilize gasoline, which directly affects the middle-class and lower-middle-class budgets.
HSD is used by most of the transportation industry. Due to its widespread usage in heavy machinery, railroads, and agricultural engines such as tractors, trucks, buses, tube wells, and threshers, as well as the fact that it raises the cost of vegetables and other food items, its price is regarded as inflationary.
Kerosene and light diesel oil (LDO) prices were not disclosed by the government. While flour mills and a few power plants use LDO, unscrupulous individuals generally use kerosene to blend with gasoline and, to some extent, for lighting in extremely isolated regions.
Prior to the most recent increase, well-informed sources claimed that the price of gasoline and HSD had risen by roughly $4 and $4.50 per barrel, respectively, on the global market over the previous two weeks. It was predicted that the price of HSD will increase by Rs8 to Rs8.50 per litre and the price of gasoline would rise by Rs2.50 to Rs2.80.
It’s interesting to note that over the past two weeks, the rupee has gained by roughly Rs0.40 versus the dollar to Rs278.20, and the import premium on gasoline has decreased by nearly 21% to $10.7 per barrel from $13.50 in the final days of March. The overall effect is predicted to be a rise in petrol prices of roughly Rs2.80 per litre over the current rate of Rs289.41.
In contrast, the price of HSD increased on the global market, and the benchmark Pakistan State Oil continued to pay the same $6.50 import premium for each barrel of HSD.
All petroleum products are exempt from general sales tax (GST), although both items are subject to a Rs60 per litre petroleum development levy (PDL) levied by the government. Additionally, the government levies a customs levy of roughly Rs. 19–20 per litre on gasoline and high-speed diesel.
The maximum allowable limit under the law for petrol and HSD is Rs60 per litre PDL.
According to agreements made with the International Monetary Fund, the government established a budget objective to levy a levy on petroleum goods for the current fiscal year that would total Rs869 billion.
