ISLAMABAD: For the second fortnight, the prices of major petroleum products — petrol and high-speed diesel (HSD) — are estimated to go up again about Rs4-5 per litre from Nov 16 for a fortnight owing to higher international prices and import premium on petrol.
Informed sources said the average prices of petrol and HSD increased in the international market by about $1.7 and $4.4 per barrel, respectively, in the last fortnight.
The import premium on petrol was up to almost $1 per barrel. Depending on final exchange rate calculation and existing tax rates, the prices of petrol and HSD are projected to increase by up to Rs4 and Rs5 per litre, respectively.
Officials said the average price of petrol increased in the international market to about $77.2 per barrel from $75.6. HSD price rose to $88 per barrel from about $83.6 in the last fortnight. During the current fortnight, the import premium on petrol increased to $9.80 per barrel from $8.8. It remained unchanged at $5 per barrel for HSD. The exchange rate also slightly moved against the rupee.
The ex-depot petrol price currently stands at Rs248.38 per litre while that of HSD is Rs255.14 per litre. On Oct 31, the government increased the prices of petrol and high-speed diesel by Rs3.85 and Rs1.35 per litre, respectively.
Petrol is mainly used in private transport, small vehicles, rickshaws and two-wheelers and directly affects the budget of the middle- and lower-middle class.
Most of the transport sector runs on HSD. Its price is considered inflationary as it is primarily 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.
Currently, the government is charging about Rs76 per litre tax on petrol and HSD. Although the general sales tax (GST) is zero on all petroleum products, the government charges Rs60 per litre PDL on both products, which generally impacts the masses.
The government also charges about Rs16 per litre of customs duty on petrol and HSD, regardless of their local production or imports. In addition, about Rs17 per litre distribution and sale margins are going to oil companies and their dealers.
On the other hand, it charges Rs50 per litre on light diesel, high octane blending component, and 95RON petrol used by the wealthy in luxury imported vehicles.
Petrol and HSD are the primary revenue spinners, with their monthly sales of about 700,000-800,000 tonnes compared to just 10,000-tonne demand for kerosene.
Published in Dawn, November 13th, 2024
