ISLAMABAD The caretaker administration on Thursday raised the price of gasoline by Rs4.13 per litre for the next two weeks ending on March 15 in its final announcement of fuel price revisions before bidding adieu. The price of high-speed diesel remained the same.
The Oil and Gas Regulatory Authority’s (Ogra) proposed new rates will take effect on March 1st, according to a late-night announcement made by the Ministry of Finance.
With immediate effect, the price of gasoline has increased by 1.5% to Rs279.75 per litre from Rs275.62. The majority of private transportation, tiny cars, rickshaws, and two-wheelers run on gasoline, therefore a rise in its price immediately affects the middle-class and lower-middle-class budgets.
The cost per litre of high-speed diesel remained constant at Rs287.33. An increase in the price of this fuel is regarded as inflationary because the transportation industry uses it the most. In particular, the fuel drives up the cost of vegetables and other food items. It is used in heavy machinery, railroads, and agricultural engines such as trucks, buses, tractors, tube wells, and threshers.
The cost of light diesel and kerosene oil was not disclosed by the government. The majority of kerosene’s usage is by dishonest people who mix it with gasoline; it is also occasionally used for warmth and lighting in isolated locations. A few power plants as well as grain mills use light diesel oil.
Over the past two weeks, there has been a minor movement in the pricing of both major petroleum products on the international market, namely petrol and high-speed diesel, ranging from 10 to 50 cents per barrel. Notably, Pakistan State Oil (PSO) has been paying higher import premiums on petrol. On February 28, the US dollar depreciated by roughly 15 paise in relation to the rupee.
Over the past two weeks, the price of gasoline has increased to $90.78 per barrel from $89.20, while the price of high-speed diesel has decreased by almost eight cents per barrel to $101.05 from roughly $101.13.
The rupee did, however, largely hold steady. PSO’s premium for securing product cargoes increased little this fortnight, from $9.47 to $10.45 per barrel for gasoline. For high-speed diesel, it stayed at $6.5 per barrel.
With an annual rate of 28.3 percent in January, the Consumer Price Index-based inflation rate has been driven mostly by the cost of petroleum and electricity. From 25.4 percent over the same period last year to 28.7 percent this seven-month average of inflation grew.
Currently, the government taxes both gasoline and high-speed diesel at a rate of roughly Rs82 per litre. The government levies a petroleum development fee of Rs60 per litre on both petroleum products, even though there is no general sales tax on any of them.
Additionally, the government levies a customs levy of roughly Rs. 17–20 per litre on gasoline and high-speed diesel.
However, it levies a tax of Rs. 50 per litre on 95 research octane number (RON) gasoline and high-octane blending components.
The government’s main sources of income are gasoline and high-speed diesel, with monthly sales of between 700,000 and 800,000 tonnes, whereas the demand for kerosene is only 10,000 tonnes.
