ISLAMABAD: The government has raised the price of gasoline and high-speed diesel (HSD) for the upcoming two weeks, despite a drop in the global market.
Experts had anticipated a drop in petroleum product prices, therefore the action was unexpected.
A formal notification on Thursday stated that the price of gasoline will increase by Rs1.35 and that of diesel by Rs3.85 per liter.
Ex-depot prices for gasoline and diesel would increase from Rs247.03 to Rs255.14 per litre and Rs251.29 to Rs248.38 per litre, respectively, until November 15.
Fuel prices increase by Rs. 1.35 and Rs. 3.85, respectively.
Kerosene and light diesel now cost Rs1.48 per liter and Rs2.61 per litre, respectively.
The Ministry of Finance stated in the late-night announcement that Ogra, the petroleum regulator, had determined the pricing by taking into account the fluctuations in the global market.
According to reports, the government kept some of the rate rise that was scheduled for October 15 in the hopes that it would be less expensive the next quarter.
But the oil firms suffered inventory losses as a result, and they also demonstrated against the government.
After then, the global prices decreased, but because of the substantial backlog, the government was forced to raise prices for the following 15 days.
After October 15, the average price of gasoline and HSD dropped by roughly $1.5 and $2.5 per barrel, respectively, on the global market.
The average price of gasoline had decreased from roughly $77.5 per barrel to roughly $76. In the past two weeks, the price of HSD has also decreased, from $86.5 to roughly $84 per barrel.
The import premium for gasoline and HSD stayed mostly constant at $8.7 and $5 per barrel, respectively, for the past two weeks. Additionally, the exchange rate remained stable.
Currently, the government taxes gasoline and HSD at a rate of roughly Rs76 per litre. However, all petroleum goods are exempt from general sales tax.
Furthermore, the government is imposing a petroleum development levy of Rs60 per liter on both goods, which typically affect the general public. Regardless of whether they are imported or produced locally, it also levies a customs fee of around Rs16 per liter on gasoline and HSD.
Additionally, oil corporations and their dealers receive distribution and sale margins of around Rs17 per litre.
Prices for LPG
The price of liquid petroleum gas (LPG) has been raised by the Oil and Gas Regulatory Authority (Ogra) by approximately Rs2.88 per kilogram for the month of November.
In November, an 11.8 kilogram cylinder would cost Rs2,999.47 instead of Rs2,965.38 as it did in September.
Ogra claims that the US dollar exchange rate and Saudi Aramco-CP were related to the pricing of LPG producers.
The average dollar exchange rate slightly down by 0.19 percent, but the Saudi Aramco-CP jumped by 1.6 percent. As a result, the price of LPG for consumers increased by Rs34.09 every 11.8 kg. It stated that the increase is Rs2.88 per kg.
