Petrol, diesel to cost Rs6 more in coming days

ISLAMABAD Due to increasing international prices, it is anticipated that the prices of gasoline, kerosene, and high-speed diesel (HSD) may rise by up to Rs6 per litre on Wednesday for the upcoming two weeks.

According to informed sources, based on the final computation on January 15, the ex-depot price of gasoline was predicted to increase by Rs5–6 per litre. Prices for diesel and kerosene are predicted to increase by roughly Rs. 2 and Rs. 3 per litre, respectively.

The forecasts for increased petroleum product prices came after bulls returned to the global market last week in response to warnings of severe sanctions on Russian energy and oil exports by US President-elect Donald Trump. Since then, the price of a barrel of Brent has increased by as much as $1 to $2.

According to these sources, the ex-refinery cost of kerosene also crept up, and the average prices of gasoline and HSD grew somewhat on the global market during the past two weeks. The exchange rate stayed steady overall, and import premiums for gasoline and diesel stayed the same.

According to the most recent calculations, the price of petrol will increase by approximately Rs5.50-6.50 per litre, HSD by Rs2-2.50, and kerosene by Rs4 during the next two weeks.

The inland freight equalization margin (IFEM), a system designed to ensure uniform rates across the country, could be used to modify the fuel price hike, according to an Ogra official.

Ex-depot rates for gasoline and diesel are Rs252.66 and Rs258.34 per litre, respectively. The official price of kerosene is Rs162.95. The government raised the price of gasoline and diesel by 56 paisa and Rs 2.96 per liter, respectively, on December 31.

The middle and lower middle classes’ budgets are directly impacted by the consumption of gasoline, which is primarily utilized in two-wheelers, rickshaws, small cars, and private transportation. HSD powers the majority of the transportation industry. Because it is mostly utilized in heavy-duty vehicles, railroads, and agricultural engines such as trucks, buses, tractors, tube wells, and threshers, its price is regarded as inflationary, driving up the cost of vegetables and other consumables.

The government taxes gasoline and HSD at a rate of roughly Rs76 per litre. The government imposes a petroleum development levy of Rs60 per litre on both petroleum products, which typically affect the public, even if the general sales tax (GST) is zero on all petroleum items.

Regardless matter whether they are imported or produced locally, the government also levies a customs levy of around Rs16 per liter on gasoline and HSD. Additionally, oil corporations and their dealers levy distribution and sale margins of around Rs17 per litre for both products.

However, the rich use 95RON petrol in luxury imported cars, and light diesel and high octane mixing components cost Rs50 a liter.