The prices of diesel and petrol were increased by Rs2.96 per litre and Rs0.56 per litre, respectively for the next 15 days of the New Year, while the rate of liquefied petroleum gas (LPG) was lowered by Rs4.01 per kilogramme on Tuesday.
According to a notification issued by the finance ministry, the Oil and Gas Regulatory Authority (Ogra) had worked out the consumer prices of the petroleum products in view of the fluctuations in the international market in the last fortnight.
Accordingly, the notification stated, the price of high-speed diesel (HSD) was increased by Rs2.96 per litre, up from Rs255.38 to Rs258.34 per litre. Similarly, the price of motor spirit (MS) or petrol had been raised by Rs0.56 per litre, moving up from Rs252.10 to Rs252.66 per litre.
The high speed diesel is widely used in transport and agriculture sectors. Therefore, the fresh increase in its price might have an inflationary impact. The petrol is used in motorbikes and cars. The government has not made a significant increase in its price, yet it might have an impact on the consumers.
Petrol is also an alternate fuel to the compressed natural gas (CNG) and its demand had increased in Punjab province, especially due to a ban on the use of indigenous gas for the last several years. The CNG consumers in this province use the imported gas which is expensive.
Simultaneously, Ogra issued a separate notification announcing a reduction of Rs47.43 or 1.58% in the price of an 11.8 kg LPG cylinder, effective January 1, 2025. Accordingly, the new price of a domestic LPG cylinder will be Rs2,953.36 in January 2025, down from Rs3,000.79 in December 2024.
Ogra said that the LPG producer price was linked to the Saudi Aramco-CP and the dollar exchange rate. As compared to the previous month, the Saudi Aramco-CP has decreased by 2%, while the average dollar exchange rate increased slightly by 0.12% resulting in the decrease in LPG consumer price.
According to officials, the premium on petroleum products was at $8.69 per barrel which was also a contributor to the increase in the prices of diesel and petrol. Besides, the consumers also paid Rs60 per litre petroleum levy on petrol and diesel. The petroleum levy goes into federal exchequer.
The calculation of increase in prices had been based at current level of petroleum levy, general sale tax (GST) and zero exchange rate. Inland freight equalization margin (IFEM) is projected to stay at Rs7.92 per litre on petrol and Rs4.18 per litre on diesel, they added.
(WITH INPUT FROM APP)
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