The federal government on Wednesday hiked the petrol price by Rs3.47 per litre and that of high-speed diesel (HSD) by Rs2.61 per litre for the next fortnight.
The new petrol price is Rs256.13 per litre and that of HSD is Rs260.95.
“Ogra has worked out the consumer prices of petroleum products in view of fluctuations in international market in the last fortnight,” said a press release from the Finance Division.
It did not mention changes in the prices of kerosene and light diesel oil.
Informed sources had earlier said the ex-depot petrol price was estimated to go up by Rs5-6 per litre depending on the final calculation. Kerosene and diesel prices were expected to rise by about Rs3 and 2 per litre, respectively.
The estimates for higher prices of petroleum products stemmed after bulls returned to the international market last week following US President-elect Donald Trump’s threats of strict sanctions on Russian oil and energy exports. The Brent prices have risen by up to $1-2 per barrel since then.
These sources said the average prices of HSD and petrol slightly increased in the international market last fortnight, while the ex-refinery cost of kerosene also inched up. Import premiums on petrol and diesel remained unchanged while the exchange rate generally remained stable.
Petrol is mainly used in private transport, small vehicles, rickshaws, and two-wheelers, and it directly affects the budget of the middle and lower middle classes. 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, which adds to the prices of vegetables and other eatables.
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 petroleum development levy on both products that normally impact the masses.
The government also charges 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 charged by oil companies and their dealers on both products.
On the other hand, it charges Rs50 per litre on light diesel and high octane blending components and 95RON petrol used by the wealthy in luxury imported vehicles.
