ISLAMABAD: Prices of all petroleum products have been raised by Rs10 to R12 per litre, on Tuesday, for the next two weeks in order to pass along the impact of rising international oil prices, and an extra petroleum levy, as agreed upon by the International Monetary Fund (IMF).
Those are the highest-ever pricing for all the crude oil and petroleum commodities, as well as probably the highest-ever price rise in a single action.
Ministers of Finance announced their decision after Prime Minister Imran Khan decided to hike the oil product tax by Rs4 per litre as part of an IMF pledge to ensure a smooth continuation of an extended fund facility (EFF) that is currently in place. No adjustment was made to the GST rate for any of these items.
The international benchmark crude price has risen by around 3% in the previous two weeks to $95 per barrel.
According to the statement, the PM agreed with the suggestion to raise the pricing of petroleum goods in line with changes in the worldwide oil prices.
The ex-depot price of petrol has been set at Rs159.86 per litre instead of Rs147.83 per litre, an increase of Rs12.03 per litre or 8.14 percent. The petrol duty was raised from Rs13.92 to Rs17.92 per litre. In addition, the government is imposing a customs levy of around Rs12 per litre on gasoline.
Diesel for high-speed vehicles has seen its ex-depot price rise from Rs144.62 to Rs154.15 per litre, a rise of Rs9.53 per litre or 6.6 percent. Additional customs duties of Rs12 per litre have been added to the petroleum charge on HSD.
Ex-depot kerosene oil prices jumped from Rs116.48 to Rs126.56, or 8.65 percent, per litre, bringing the total rise to Rs10.08. An increase in the fuel tax was made on kerosene from Re1 to Rs5 per litre.
From Rs114.54 to Rs123.97 ex-depot, the ex-depot price of light-diesel oil (LDO), an increase of Rs9.43 or 8.23 percent. From Rs5.50 to Rs9.50 per litre, the fuel charge on LDO was increased.
The price of all aircraft fuel was also raised. JP-1’s price has increased by Rs11 to Rs140.65 per litre, while JP-8’s price has climbed by Rs7 to Rs135.72 per litre. An additional Rs10.35 per litre was added to the price of E-10 fuel (ethanol gasoline). There are no PLs in any of these three goods but GST remains 17%.
Finance Minister said that oil prices had risen to their highest level in the international market since 2014 when he announced the price increase.
However, in 2014, the domestic price of petrol and HSD was between Rs110 and Rs120 per litre, which is interesting to consider.
On January 31, the prime minister postponed price review and gave people comfort by reducing GST and OL, but he was still losing Rs35bn in income over two weeks, according to the report.
On all crucial items including fuel, HSD, kerosene and LDO, the GST is currently nil compared to the 17pc usual GST. It costs Rs17.92/litre in petroleum levies, Rs13.30/litre in hydrogen sulphur diesel, Rs9.50/litre in liquefied petroleum gas, Rs5/litre in kerosene, and Rs30/litre in high-octane blending component. Petrol and HSD are also subject to a customs charge of roughly Rs12 per litre.
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