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       ISLAMABAD: The government has increased the price of diesel by Rs5 per litre, while the rate of petrol has been kept the same for the next fortnights, according to an official announcement.

       This is the first hike in the pri-ces of petroleum products in three mo-n-ths, which have been const-antly going down due to the falling prices in the international market.

       In a late-night announcement on Tuesday, the Ministry of Finance said the ex-depot price of high-speed diesel (HSD) was set at Rs251.29, up by Rs5 per litre from Rs246.29 per litre.

       The petrol price was kept unchanged at Rs247.03 per litre for the next fortnight.

       Govt hikes rate by Rs5 to Rs251; petrol kept unchanged at Rs247

       In the retail market, both petrol and diesel are being sold at a higher price — Rs248 to 248.50 and Rs252, respectively.

       According to the ministry’s announcement, the Oil and Gas Regulatory Authority has worked out the prices based on the variations in the international market.

       The price of diesel had gone up by an average of $1.5 per barrel while petrol remained range-bound in the international market.

       Over the last five fortnights, the prices of petrol and HSD have dropped by Rs28.57 and Rs36.34 per litre, respectively.

       Earlier, the prices of petrol and HSD had witnessed an increase of Rs17.44 and Rs15.74 per litre, respectively in the month of July.

       Between May 1 and June 15, the prices were reduced by about Rs35 per litre and Rs22 per litre, respectively.

       At present, the government is charging about Rs76 per litre tax on both petrol and HSD. However, the general sales tax is zero on all petroleum products.

       The government is also charging Rs60 per litre Petroleum Development Levy (PDL) for both products that normally impact the masses. Other charges include about Rs16 per litre Customs duty on petrol and HSD, irrespective of their local production or imports.

       In addition, about Rs17 per litre distribution and sale margins are going to oil companies and their dealers.

       On the other hand, the government is charging Rs50 per litre tax on light diesel and high octane blending components and 95RON petrol used by the wealthy for their luxury imported vehicles.Petrol and HSD are the major revenue spinners, with monthly sales of about 700,000 to 800,000 tonnes per month.

       Published in Dawn, October 16th, 2024