Petrol prices in Pakistan hiked by PKR 9.66 per litre, surges to PKR 289.41 per litre

Apr1,2024



New Delhi: government of pakistan has increased price of petrol PKR 9.66 per liter amid inflation, reports Dawn. Petrol prices rose to PKR 289.41 per liter from previous PKR 279.75, while high-speed diesel (HSD) declined by PKR 3.32 to PKR 282.24 per litre.
The adjustment, effective from April 1, was announced by the Finance Ministry following a recommendation by the Oil and Gas Regulatory Authority (Ogra).
The ministry attributed the change to fluctuations in international petrol and HSD prices, which is in line with the government's policy to reflect global market variations domestically. The government kept petrol prices intact at PKR 279.75 per liter and reduced HSD prices by PKR 1.77 to PKR 285.56 per litre.
Petrol prices were expected to rise due to rising import premiums and global prices, while international HSD prices declined. Pakistan State Oil (PSO) import premium for HSD stood at US$6.50 per barrel, with an expected range of PKR 1.30 to PKR 2.50 per litre.
Gasoline prices rose nearly US$4 a barrel to US$94.5, while HSD prices fell nearly 60 cents a barrel to US$98.4, officials said. The exchange rate improved slightly in the last fortnight to US$278.6 per US dollar.
The Government of Pakistan already levies a Petroleum Development Levy (PDL) of PKR 60 per litre, with the aim of collecting PKR 869 billion in PDL during the financial year. This levy has contributed significantly to revenue generation, with PKR 475 billion collected in the first half of the financial year.
Petroleum and electricity prices are important drivers of inflation, which directly affect the budgets of middle and lower-middle class households. Currently, the government taxes petrol and HSD at around PKR 82 per litre, with no General Sales Tax (GST) applicable on petroleum products.
Apart from PDL, the government levies PKR 50 on high-octane blending components and 95 research octane number petrol, along with PKR 19-20 per liter customs duty on petrol and HSD. These fuels are the major revenue sources, with monthly sales of 700,000 to 800,000 tonnes, compared to 10,000 tonnes of kerosene.
(with agency input)



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