ISLAMABAD: Due to rising global prices and the import premium on gasoline, the prices of the two main petroleum products, gasoline and high-speed diesel (HSD), are predicted to increase by around Rs4-5 per litre starting on November 16 for a fortnight.
According to knowledgeable sources, during the past two weeks, the average price of gasoline and HSD on the global market rose by roughly $1.7 and $4.4 per barrel, respectively.
The price of gasoline imported was about $1 per barrel. Petrol and HSD prices are expected to rise by up to Rs4 and Rs5 per liter, respectively, depending on the final exchange rate computation and current tax rates.
According to officials, the average price of gasoline rose from $75.6 to roughly $77.2 per barrel on the global market. Over the past two weeks, the price of HSD has increased from roughly $83.6 per barrel to $88. The import premium for gasoline rose from $8.8 per barrel to $9.80 during the current two weeks. The price of HSD per barrel stayed at $5. Additionally, the exchange rate moved somewhat in relation to the rupee.
The current price of HSD is Rs255.14 per litre, while the ex-depot price is Rs248.38 per litre. The government raised the price of high-speed diesel and gasoline by Rs1.35 and Rs3.85 per liter, respectively, on October 31.
Petrol has a direct impact on middle- and lower-middle-class budgets and is primarily utilized in private transportation, small cars, rickshaws, and two-wheelers.
HSD powers the majority of the transportation industry. Because it is mainly utilized in heavy-duty vehicles, railroads, and agricultural engines such as trucks, buses, tractors, tube wells, and threshers, its price is seen as inflationary. It also raises the cost of vegetables and other consumables.
At the moment, the government taxes petrol and HSD at a rate of roughly Rs76 per liter. Despite the fact that all petroleum products are exempt from general sales tax (GST), the government imposes Rs60 per liter PDL for both, which disproportionately affects the general public.
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 receive distribution and sale margins of around Rs17 per litre.
However, it costs Rs50 per liter for 95RON fuel, light diesel, and high octane blending components, which are utilized by the wealthy in high-end imported cars.
With monthly sales of roughly 700,000–800,000 tons, petrol and HSD are the main revenue generators, whereas kerosene demand is only 10,000 tonnes.
