Petrol and diesel prices are expected to increase by Rs 4 to Rs 11 per liter for the next fortnight from February 16, due to the increase in oil prices in the global market and increase in import premium, due to a slight improvement in the exchange rate. The effects will disappear. It should be noted that on January 31, before the general elections, the government increased the price of petrol by 13 rupees 55 paise per liter and the price of diesel by 2 rupees 75 paise per liter, after which the price of petrol per liter increased to 272 rupees 89 paise. And diesel became 278 rupees 96 paise.
According to the report of Dawn newspaper, informed sources said that the prices of petrol and diesel in the global markets have increased during the last 15 days, in addition to this, Pakistan State Oil (PSO) had to pay more in terms of import premium. However, the rupee appreciated against the dollar. As a result, diesel may be expensive by Rs 9-11 per liter and petrol by Rs 4. However, this will depend on the exchange rate calculation. Likewise, the prices of kerosene and light diesel are likely to increase slightly.
Over the past two weeks, gasoline prices rose about $1.2 to $89.9 a barrel from $88.7 a barrel, while diesel rose $3.5 to $101.82 a barrel from $98.4 a barrel, officials said. The rupee appreciated by about 40 paise against the , and the Pakistani currency fell to 279.7 rupees as against 280 in the February half.
It added that PSO's cargo premium remained unchanged at $9.7 per barrel from $9.5 for petrol and $6.5 per barrel for diesel. The government is already charging a development levy of Rs 60 per liter on both petrol and diesel, the maximum allowed under the law, in the current financial year as part of its commitment to the International Monetary Fund (IMF). The government's target is to collect Rs 869 billion from petroleum levy, but it has collected Rs 475 billion during the first half (July-December). The government expects to receive Rs 970 billion in this regard by the end of the current fiscal year, though the revised target has been raised to Rs 920 billion.
Most of the petrol is used in private transport, small vehicles, rickshaws and motorcycles, which has a direct impact on the budget of low and middle income earners. On the contrary, the price of diesel has a greater impact on inflation, as it is used in heavy transport, trains, agricultural engines such as trucks, buses, tractors, tube wheels and threshers, and it is mainly used in vegetable and other It causes the price of food items to increase.
The government is collecting taxes of around Rs 82 per liter on both petrol and diesel, although the government does not levy any sales tax on petroleum products, it has imposed a petroleum development levy of Rs 60 per liter on both the products. But it is also charging customs duty of about 17 to 20 rupees per liter. Petrol and diesel are the major sources of revenue, with monthly sales of around 7 to 8 lakh tonnes, while the monthly consumption of kerosene is only 10,000 tonnes.
