More misery for the masses as petrol prices in Pakistan are likely to rise [Post Updated # 419]

Fuel prices poised for second fortnightly rise

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.

DAWN NEWS
 
Govt keeps petrol, diesel prices unchanged

The government on Friday kept the prices of petrol and High-Speed Diesel (HSD) unchanged for the next fortnight.

For the next 15 days, the prices of petrol and HSD will remain at Rs248.38, and Rs255.14 per litre, respectively, according to a Finance Division notification.


 
Petrol price expected to increase

The federal government is expected to revise petrol and diesel prices in Pakistan during the upcoming fortnightly review for December 2024.

The new petroleum prices will be announced on the night of November 30, with the updated rates set to take effect from December 1 to 15, Express News reported.

According to reports, petrol price is expected to go up by PKR 3.15 per liter, diesel by PKR 3.20 per liter, and kerosene oil by PKR 4 per liter.


 
Petrol, diesel prices may stay mostly unchanged

The prices of major petroleum products are estimated to remain mostly unchanged for the next fortnight ending December 15 owing to a negligible change in international prices and a minor gain in the exchange rate.

Informed sources said the average prices of petrol and high-speed diesel (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.

An Ogra official said the price difference was so close that it could be adjusted within the inland freight equalisation margin (IFEM) — a mechanism actually meant for uniform prices across the country. “In any case, the increase in prices is expected to be less than Rs3 per litre,” he said.

The ex-depot petrol price currently stands at Rs248.38 per litre while that of HSD at Rs255.14. For the current fortnight, the government had kept unchanged the prices of all petroleum products on Nov 15, although the prices of petrol and HSD increased by Rs3.85 and Rs1.35 per litre, respectively, on Oct 31.

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 general sales tax is zero on all the petroleum products, the government is charging Rs60 per litre petrol development levy (PDL) 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.

DAWN NEWS
 
Govt increases petrol, diesel prices for next fortnight

The finance ministry issued a notification revising petroleum product prices for the next fortnight, starting from December 1 (Sunday).

According to details, petrol became costlier by Rs3.72 per litre, setting the new price at Rs252.10 per litre. High-speed diesel (HSD) saw an increase of Rs3.29 per litre, bringing its new price to Rs258.43 per litre.

Conversely, kerosene became cheaper by Rs0.62 per litre, and the price of light diesel dropped by Rs0.48 per litre.

The notification detailed these adjustments in response to market fluctuations.

Earlier, Prime Minister Shehbaz Sharif-led government had decided to keep the petrol and diesel prices unchanged for the fortnight starting from November 16, 2024.

According to a notification issued by the finance ministry, the petrol price had remained stable at Rs248.38 per litre, while the price of high-speed diesel had remained unchanged at Rs255.14 per litre.

SOURCE: https://www.samaa.tv/2087324877-govt-increases-petrol-diesel-prices-for-next-fortnight
 
Back
Top