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ISLAMABAD: For the second fortnight in a row, the coalition government led by the PML-N on Monday increased the prices of petrol and high speed diesel (HSD) by Rs9.99 and Rs6.18 per litre, respectively, mainly because of higher international market.
In a late-night announcement, the Ministry of Finance said the Oil & Gas Regulatory Authority (Ogra) had worked out the consumer prices, based on the price variations in the international market. The tax and duty rates would remain unchanged, it added.
The ex-depot petrol price was thus increased to Rs275.60 per litre from Rs265.61 at present, up by 3.76pc (Rs9.99). In the retail market, petrol would, however, be available on the higher side of Rs276 per 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 classes.
The ex-depot price of HSD was jacked up by Rs6.18 per litre to Rs283.63 (2.23pc) against Rs277.45 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, trucks, buses, tractors, tube-wells and threshers and particularly adds to the prices of vegetables and other eatables.
Officials said the price of petrol had increased in the international market by about $4.3 to $89.50 per barrel and that of HSD by $1.5 per barrel to about $96 over the last fortnight.
During the last fortnight, the import premium on both petrol and HSD had remained unchanged at $9.60 and $6.50 per barrel, respectively.
On the other hand, rupee appreciated by about 35 paise against dollar during the fortnight.
The government has jacked up maximum limit of petroleum levy to Rs70 per litre in the finance bill to collect Rs1.28 trillion in the current fiscal year against Rs960 billion collected during the last fiscal year.
The petrol and HSD prices had increased by Rs7.45 and Rs9.56 per litre on June 30. As such, the total increase in two fortnights stands at Rs17.44 per litre for petrol and Rs15.74 for HSD.
Published in Dawn, July 16th, 2024
