The federal government on Saturday hiked the petrol price by Rs3.72 per litre and that of high-speed diesel (HSD) by Rs3.29 per litre for the next fortnight.

The new petrol price is Rs252.1 while that of HSD is Rs258.43.

Meanwhile, the prices of kerosene oil and light-diesel oil were slashed to Rs164.98 and Rs151.73 with cuts of Rs0.62 and Rs0.48, respectively.

A notification issued by the Finance Division said: “Ogra has worked out the consumer prices of petroleum products as per variation in the oil price in the international market. It has accordingly been decided that the prices of petroleum products for next fortnight starting from Dec 1, 2024, would be slightly revised.”

The prices were estimated to remain mostly unchanged for the next fortnight owing to a negligible change in international prices and a minor gain in the exchange rate.

Informed sources had said the average prices of petrol and HSD had slightly increased in the international market in the last fortnight. Import premium on both petrol and diesel remained unchanged. The exchange rate moved slightly in favour of the rupee.

As a result, the latest calculations as of Nov 28 showed around Rs3 per litre increase in the prices of petrol, HSD and kerosene, despite a slight decline seen in international prices for the last two days of the month.

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, 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.

At present, the government is charging about Rs76 per litre tax on both petrol and HSD. Although the general sales tax is zero on all petroleum products, the government is charging a Rs60 per litre petrol development levy on both petrol and HSD that normally impact the masses.

The government is also charging about Rs16 per litre customs duty on petrol and HSD, irrespective 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 is charging Rs50 per litre on light diesel and high octane blending component and 95RON petrol used by the wealthy in luxury imported vehicles.