ISLAMABAD: Continuing their upward trend, the two main petroleum products, gasoline and high-speed diesel (HSD), are expected to rise by more than Rs7.60 and Rs3.50 per liter, respectively, starting on July 16 for the upcoming fortnight. This is primarily due to higher global oil prices, sources said, with gasoline and HSD prices rising by roughly $4.4 and $2 per barrel, respectively, on the international market in the previous fortnight. Final calculations and current tax rates will determine how much each of these products will cost.
The government has jacked up the maximum limit of petroleum development levy (PDL) to Rs70 per liter in the Finance Bill to collect Rs1.28 trillion in the current fiscal year against Rs960bn collection during the previous year, almost Rs91bn higher than the Rs869bn budget target. During the current fortnight, import premiums on both petrol and HSD have remained unchanged at $9.60 and $6.50 per barrel, respectively. On the other hand, the rupee depreciated by about 17 paise against the dollar during the fortnight.
On June 30, the price of a liter of gasoline and HSD increased by Rs. 7.45 and Rs. 9.56, respectively.
As a result, the ex-depot costs for HSD and gasoline are Rs2.77.45 and Rs265.61, respectively, per liter.
The price of high-speed diesel and gasoline was lowered by approximately Rs22 and Rs35 per liter, respectively, between May 1 and June 15.
Currently, the government taxes gasoline and HSD at a rate of around Rs77 per liter. The government imposes Rs60 per liter PDL on both petroleum products, even if the general sales tax (GST) is nil on all petroleum goods. This generally affects the public. In addition, the government imposes a customs fee of around Rs. 17 on a liter of gasoline and HSD, regardless of whether they are imported or produced locally.
The main causes of the high rate of inflation have been the cost of energy and petroleum. Most private transportation, tiny cars, rickshaws, and two-wheelers run on gasoline. However, as diesel is largely utilized in large transport trucks and raises the cost of vegetables and other food items, an increase in its price is regarded as extremely inflationary.
