On Wednesday, the federal government increased the price of high-speed diesel (HSD) by Rs2.61 per litre and petrol by Rs3.47 per litre for the upcoming two weeks.
The price of HSD is Rs260.95 per litre, whereas the current price of petrol is Rs256.13.
According to a press release from the Finance Division, “Ogra has calculated the consumer prices of petroleum products in light of changes in the global market over the past two weeks.”
Changes in the cost of light diesel oil and kerosene were not mentioned.
Informed sources had previously stated that, depending on the final computation, the ex-depot price of gasoline was expected to increase by Rs5–6 per liter. Prices for diesel and kerosene were predicted to increase by roughly Rs. 2 and Rs. 3 per litre, respectively.
The forecasts for increased petroleum product prices came after bulls returned to the global market last week in response to warnings of severe sanctions on Russian energy and oil exports by US President-elect Donald Trump. Since then, the price of a barrel of Brent has increased by as much as $1 to $2.
According to these sources, the ex-refinery cost of kerosene also crept up, and the average prices of gasoline and HSD grew somewhat on the global market during the past two weeks. The exchange rate stayed steady overall, and import premiums for gasoline and diesel stayed the same.
The middle and lower middle classes’ budgets are directly impacted by the consumption of gasoline, which is primarily utilized in two-wheelers, rickshaws, small cars, and private transportation. HSD powers the majority of the transportation industry. Because it is mostly utilized in heavy-duty vehicles, railroads, and agricultural engines such as trucks, buses, tractors, tube wells, and threshers, its price is regarded as inflationary, driving up the cost of vegetables and other consumables.
The government taxes gasoline and HSD at a rate of roughly Rs76 per litre. The government imposes a petroleum development levy of Rs60 per litre on both petroleum products, which typically affect the public, even if the general sales tax (GST) is zero on all petroleum goods.
Regardless matter whether they are imported or produced locally, the government also levies a customs levy of around Rs16 per liter on gasoline and HSD. Additionally, oil corporations and their dealers levy distribution and sale margins of around Rs17 per litre for both products.
However, the rich use 95RON petrol in luxury imported cars, and light diesel and high octane mixing components cost Rs50 a liter.
