The federal government on Monday increased the price of petrol by Rs 9.99 per liter and the price of High Speed Diesel (HSD) by Rs 6.18 per liter for the next fortnight.
A notification from the finance division said that due to price differences in the international market, the new price for petrol is Rs 275.6 per liter and for HSD Rs 283.63 per litre.
There will be no change in applicable duties and taxes, he said, adding that they will remain at existing levels.
Due to the increase in global oil prices, the prices of both the petroleum products are likely to increase by more than Rs 7.60 and Rs 3.50 respectively.
Sources said that petrol and HSD prices in the international market have increased by $4.4 and $2 per barrel respectively.
In the Finance Bill, the government has raised the ceiling of Petroleum Development Levy (PDL) to Rs 70 per liter to raise Rs 1.28 trillion in the current financial year, which is about 91% more than last year’s budget of Rs 960 billion. Billion rupees are more. target
During the current fortnight, import premiums on both petrol and HSD remained at $9.60 and $6.50 per barrel respectively. During the fortnight, the rupee depreciated by approximately 17 paise against the dollar.
The government currently levies a tax of around Rs 77 per liter on both petrol and HSD. Although the general sales tax on all petroleum products is nil, the government levies a PDL of Rs 60 per liter on both products, affecting the general public. The government is also charging a custom duty of around Rs 17 per liter of petrol and HSD, whether locally produced or imported.
Petroleum and electricity prices have been the main drivers of high inflation. Petrol is mostly used in private transport, small vehicles, rickshaws, and motorbikes.
On the other hand, the increase in the price of diesel is considered highly inflationary as it is mostly used in heavy transport vehicles and increases the prices of vegetables and other food items in particular.