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ISLAMABAD: Government officials have decided to raise fuel and high-speed diesel (HSD) prices for the next two weeks, despite a recent drop in global market prices.
The price of petrol will increase by 1.35 rupees per liter to 248.38 rupees, while the price of high-speed diesel will increase by 3.85 rupees per liter to 255.14 rupees. The new prices will apply starting on November 1st.
An official statement from the Ministry of Finance confirmed that the Oil and Gas Regulatory Authority (OGRA) had calculated the new consumer pricing based on fluctuations in global markets.
However, the government has lowered the price of kerosene by Rs. 1.48 per liter to Rs. 161.54 and the price of light diesel oil by Rs. 2.61 per liter to Rs. 147.51.
The price of gasoline remained steady at 247.03 rupees per liter at the last petroleum price review held every two weeks, while the price of high-speed diesel rose 5 rupees per liter to 251.29.
Fuel Prices in the International Market
On the global market, the average price of petrol fell by almost $1.5 per barrel after October 15, while the average price of HSD fell by roughly $2.5 per barrel.
Petrol prices fell from $77.5 per barrel to around $76 per barrel on average. Similarly, HSD’s price dropped to around $84 per barrel from $86.5 two weeks ago.
Over the past two weeks, the import premium on petrol (at $8.7 per barrel) and HSD (at $5 per barrel) has stayed mostly unchanged. Additionally, the exchange rate remained unchanged.
The current government tax on fuel and HSD is Rs76 per liter. Having said that, no petroleum product is subject to the general sales tax.
In addition, the government is imposing a petroleum development levy of Rs60 per liter on both items, which typically affects the general public. Additionally, regardless of whether they are produced locally or imported, petrol and HSD are subject to a customs levy of around Rs16 per liter.
Also, oil companies and their sellers get about Rs17 per liter in distribution and sale margins.
