ISLAMABAD: Petrol and high-speed diesel (HSD) prices are projected to rise significantly in the upcoming review on July 16, mainly due to increasing global oil prices. Petrol is expected to increase by over Rs7.60 per litre, while HSD may see a hike of Rs3.50 per litre.
Sources report that international market prices for petrol and HSD have risen by approximately $4.4 and $2 per barrel, respectively, over the last fortnight. Based on current tax rates and final calculations, these increases are anticipated.
The government has increased the petroleum development levy (PDL) to Rs70 per litre in the Finance Bill to collect Rs1.28 trillion this fiscal year, up from Rs960 billion the previous year. Import premiums for petrol and HSD remain at $9.60 and $6.50 per barrel, respectively, while the rupee has depreciated by 17 paise against the dollar.
The prices for petrol and HSD rose by Rs7.45 and Rs9.56 per litre on June 30, bringing ex-depot prices to Rs265.61 and Rs277.45 per litre, respectively. Previously, between May 1 and June 15, petrol and HSD prices were reduced by Rs35 and Rs22 per litre, respectively.
Currently, the government charges about Rs77 per litre in taxes on both petrol and HSD, with Rs60 per litre attributed to PDL. Despite zero general sales tax (GST) on petroleum products, there is also a Rs17 customs duty per litre on both locally produced and imported petrol and HSD.
Petroleum and electricity prices are major contributors to high inflation. Petrol is primarily used in private transport, small vehicles, rickshaws, and two-wheelers, while diesel’s price increase significantly impacts inflation, particularly affecting heavy transport and the prices of vegetables and other essential goods.
Story by Khaleeq Kiani
