ISLAMABAD: Despite a reduction in international crude price, the government on Wednesday increased the prices of all petroleum products by a range of 4.5 to 10 per cent for August because of currency fluctuations.

With this adjustment, the petroleum prices in the country are now at the highest-ever mark with international crude market at $63 per barrel — almost 57pc lower than the 2008 highest record of $147 when average retail prices stood below Rs80 per litre.

Based on import parity price of Pakistan State Oil (PSO) for purchases in July, the government approved Rs5.65 per litre increase in the ex-depot price of HSD, Rs5.15 in petrol, Rs5.38 in kerosene and Rs8.9 per litre for light diesel oil (LDO). Retail prices are generally 30-50 paisa per litre higher in the market.

As such, the ex-depot rate of HSD has been set at Rs132.47 per litre instead of Rs126.82, with an increase of about 4.45pc. Likewise, ex-depot price of petrol has been fixed Rs117.83 per litre, about 4.6pc higher than existing rate of Rs112.68.

Similarly, the ex-depot price of light diesel oil was set at Rs97.52 per litre, up 10pc over the existing rate of Rs88.62. The price of kerosene has also been worked out at Rs103.84 per litre, showing an increase of about 5.5pc over the current rate of Rs98.46 per litre.

An official said the government was following an IMF programme and there was no option but to pass on to consumers the full price increase calculated by the Oil & Gas Regulatory Authority. He said because of shortfall in revenue collection in the first month of this fiscal year, it was all the more important not be lenient on revenue targets.

The prices of petrol and high-speed diesel (HSD) are now the highest in 16 years since July 2003 while kerosene is at a level last seen in 2014.

The official said the crude price had dropped by more than 12pc in the Arabian Gulf — the source of oil imports to Pakistan — from $72 on April 28 to $63 per barrel on July 30 but the government has been gradually increasing tax rates.

The government is currently charging 17pc general sales tax on all petroleum products. Besides the GST, it has also been charging petroleum levy ranging between Rs14-18 on petrol and HSD and Rs3-6 per litre on lerosene and LDO.

Published in Dawn, August 1st, 2019