ISLAMABAD: The government on Monday increased the prices of petrol and high-speed diesel by Rs4.53 and Rs8.14 per litre, respectively, for the next fortnight ending April 30.

In a late-night an­­nouncement, the Ministry of Finance stated since the prices of petroleum products had seen an increasing trend in the international market during the last fortnight, it decided to accordingly revise the existing consumer prices of petroleum products.

The ex-depot petrol price was thus increased from Rs289.41 to Rs293.94, up by 1.6pc (or Rs4.53 per litre), for the next fortnight. In the retail market, petrol would, however, be available for no less than Rs295 a litre.

Petrol is mostly used in private transport, small vehicles, rickshaws and two-wheelers and has a direct bearing on the budget of middle- and lower-middle class.

On the other hand, the ex-depot price of high-speed diesel (HSD) was increased by Rs8.14 per litre (2.9pc) to Rs290.38 per litre for next 15 days against Rs282.24 per litre over the past fortnight. Most of the transport sector runs on HSD. Its price is considered inflationary as it is mostly used in heavy transport vehicles, trains and agricultural engines like trucks, buses, tractors, tube-wells and threshers and particularly adds to the prices of vegetables and other eatables.

The government did not announce the prices of kerosene and light-diesel oil. Kerosene is mostly used by unscrupulous elements for mixing it with petrol and to some extent for lighting in very remote areas while LDO is consumed by flour mills and a couple of power plants.

Informed sources said the prices of petrol and HSD had increased in the international market by about $4 and $4.50 per barrel respectively in the last fortnight before the latest escalation.

Interestingly, the import premium on petrol has dropped by almost 21pc to $10.7 per barrel over the last fortnight when compared to $13.50 in last few days of March and the rupee strengthened by about 40 paisa, except on April 15 when it lost value against US dollar.

The HSD price, on the other hand, was up in the international market and its import premium paid by the benchmark PSO remained unchanged at $6.50 per barrel.

At retail stage, the HSD would be sold at about Rs292 per litre.

For the purpose of price calculations, officials said the price of petrol had gone up by about $4 per barrel to $98.5 last week from $94.5 earlier while HSD price went up by about $4.50 per barrel to $102.9 from $98.4.

On April 1, the government had increased the price of petrol by Rs9.66 per litre and reduced that of HSD by Rs3.32 per litre for the first fortnight of the month.

Published in Dawn, April 16th, 2024