Oil prices in the global market have been fluctuating recently and Pakistan government will most likely pass on the impact to the general consumer.
The Oil and Gas Regulatory Authority (Ogra) has forwarded the summary to Ministry of Energy (Petroleum Division) proposing an increase of Rs 3.22 per liter in petrol prices.
Apart from that, prices of other petroleum products including High-Speed Diesel, Kerosene Oil might go up as well.
Another reason cited for the price hike is the current devaluation of rupee against dollar.
The regulator has recommended the following increase in prices;
- Petrol price to be increased by Rs 3.22 per liter, currently it stands at Rs 86 per liter.
- High-Speed Diesel price to see a hike of Rs 5.02 per liter which will make the new price of Rs 101.47 per liter.
- An increase of Rs 6.95 per liter in Light Diesel Oil’s price. Currently, it costs Rs 72.25 per liter.
- Kerosene oil’s price will be updated as well. OGRA recommended an increase of Rs 6.97 per liter in its price, currently, it costs Rs 76.46.
Petroleum products are evidently major contributors to the national treasury as current increase will see an additional Rs 130 billion in the exchequer. The government charges two taxes on all petroleum products – petroleum levy and general sales tax.
General sales tax is being charged at 31% on high-speed diesel while 17% on the rest of the petroleum products. Petroleum levy is charged at following rates;
- Rs 8 per liter on high-speed diesel,
- Rs 10 per liter on petrol,
- Rs6 per liter on light diesel oil, and
- Rs3 per liter on kerosene oil.
Once approved, the HSD’s price will be at its highest since October 2014. Despite growing prices, HSD’s demand is continuously increasing as the current sales stand at 800,000 tonnes a month. Petrol also manages decent sales of 700,000 tonnes every month while Kerosene and LDO’s sales are less than 10,000 tonnes each month.