ISLAMABAD: The Pakistan government has announced significant increases in petrol and high-speed diesel ( HSD ) prices, citing fluctuations in international markets as the reason behind the hikes, Dawn reported.
According to a warning from the Finance Division, diesel rates surged by PKR 9.99 per gallon, reaching PKR 275.6/ltr, while HSD saw a surge of PKR 6.18/ltr, settling at PKR 283.63/ltr for the future month. The adjusting, it clarified, was important due to recent rate deviations in global oil industry.
Notably, the government made a point of stating that, despite price increases, there would remain the same levels of relevant duties and taxes as they are currently.
Options revealed that global market prices for diesel and HSD had climbed by roughly USD 4.4 and USD 2 per barrel, both, over the last two weeks, prompting the changes, as reported by Dawn.
In anticipation of higher world oil prices, economists had forecast raises exceeding PKR 7.60 and PKR 3.50 per gallon for diesel and HSD, both. The Pakistani Rupee depreciated by about 17 pence against the money over the same month, but buy prices for gasoline and HSD remained constant at USD 9.60 and USD 6.50, both.
Through the Finance Bill, the government made a decision to increase the maximum petroleum development levy ( PDL ) cap to PKR 70 per litre. This action aims to increase revenue collection by aiming for a total of PKR 1.28 trillion for the current fiscal year, away from PKR 960 billion in the previous month, and surpassing the budget’s original destination by PKR 91 billion.
Taxes on both gasoline and HSD now run at an average of 77 PKR per litre, along with a fixed PDL of 60 PKR per litre, which has a significant impact on consumers. Moreover, a PKR 17 per gallon of customs duty is slapd on both imported and domestic gasoline and HSD de facto.
The price hikes in petrol and diesel are expected to effect inflation, with petrol largely used in personal transport, rickshaws, and two-wheelers, while diesel is important for large transport vehicles and contributes significantly to the cost of necessary commodities quite as vegetables, Dawn reported.
