Govt raises petrol price by Rs2.13

The government on Tuesday increased the price of petrol by Rs2.13 per liter effective from June 16 [today]. It also raised the price of high speed diesel (HSD) by Rs1.79 per liter, the price of kerosene oil by Rs1.89 per liter and the price of light diesel oil (LDO) by Rs2.03 per liter.

The Oil and Gas Regulatory Authority (Ogra) had proposed an increase in the price of petrol by Rs4.20 per liter and the HSD by Rs3.50 per liter. The HSD is widely used in agriculture and transport sectors. Therefore, any increase in its price will also result in inflation.

Ogra had calculated the prices based on the rate of petroleum levy on the HSD at Rs5.14, and petrol at Rs4.80 per liter. Now, the price of petrol has been increased from Rs108.56 per liter to Rs110.69 per liter. The HSD will be sold at Rs112.55 per liter against earlier price of Rs110.76 per liter.

The government has increased the price of kerosene oil from Rs80 to Rs81.89 per liter and the LDO from Rs77.65 to Rs79.68 per liter. Kerosene oil is used in remote areas where liquefied petroleum gas (LPG) is not available for cooking purposes. The LDO is used for industrial purposes.

Earlier, on June 1, Prime Minister Imran Khan decided to maintain the prices of petroleum products as set on May 17.  The government had not increased the prices of petroleum products since April 16 so that there might not be a corresponding increase in the prices of essential items.

Ogra calculates ex-depot prices of petroleum products in view of the rate of petroleum levy and general sales tax.  Petroleum products are a significant contributor to taxes as the government is currently charging a double tax. It is charging a petroleum levy and general sales tax, resulting in higher prices.