For the next two weeks, the caretaker administration raised the price of gasoline by Rs. 2.73 per litre on Thursday night.
A notice from the Finance Division states that the price of gasoline has changed from Rs272.89 to Rs 275.62 per litre.
High-speed diesel (HSD) now costs Rs287.33 a litre, an increase of Rs8.37.
The Oil and Gas Regulatory Authority (Ogra) proposed that the government alter the present prices of petroleum products for a fortnight beginning on February 16; this decision was made, according to a late-night announcement from the Ministry of Finance.
Kerosene oil and light diesel oil prices were not mentioned in the announcement.
For the next two weeks, it was predicted that the prices of gasoline and HSD would increase by Rs4–11 per litre due to increasing import tariffs and worldwide costs, offsetting the small exchange rate gain.
According to officials, during the past two weeks, the price of gasoline has increased by around $1.20 per barrel to $89.9 from $88.7 per barrel, while the price of HSD has increased by roughly $3.5 per barrel to $101.82 from approximately $98.4.
In contrast, the rupee appreciated by almost 40 paise versus the US dollar, reaching Rs279.7 from slightly over Rs280 in the first half of February. The premium that Pakistan State Oil paid, however, increased marginally from $9.5 to $9.7 per barrel for the security of product cargoes containing gasoline. At $6.5 per barrel, it did not alter for HSD.
The maximum amount allowed by law, which is Rs60 per liter for both gasoline and HSD, has already been reached by the government. In accordance with agreements made with the International Monetary Fund (IMF), the government had set a budget aim to collect Rs869 billion in petroleum levies on petroleum-based goods during the current fiscal year. Despite a steady increase in the per-litre charge, it has already earned almost Rs475 billion in the first half (July-December).
At present, the government levies a tax of around Rs82 per liter on gasoline and HSD. The government charges Rs60 per litre PDL for both petroleum products, even though there is no general sales tax (GST) on any petroleum product. However, it charges Rs50 per gallon for 95RON petrol and high octane mixing ingredients.
With monthly sales of over 700,000–800,000 tonnes for petrol and HSD in contrast to just 10,000 tonnes for kerosene, these two products are the main revenue generators.
SOURCE: DAWN NEWS
