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Govt hikes petrol price by Rs9.99, HSD by Rs6.18

July 15, 2024
in News
Govt hikes petrol price by Rs9.99, HSD by Rs6.18
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The federal government on Monday hiked the petrol price by Rs9.99 per litre and that of high-speed diesel (HSD) by Rs6.18/ltr for the next fortnight.

A notification from the Finance Division said the new petrol price was Rs275.6/ltr and Rs283.63/ltr for HSD due to price variations in the international market.

It said there would be no change in the applicable duties and taxes, adding that they would remain at the existing level.

Prices of the two petroleum products were expected to increase by more than Rs7.60 and Rs3.50 because of higher global oil prices.

Sources said the prices of petrol and HSD had increased in the international market by about $4.4 and $2 per barrel, respectively, in the last fortnight.

The government has jacked up the maximum limit of petroleum development levy (PDL) to Rs70 per litre in the Finance Bill to collect Rs1.28 trillion in the current fiscal year against Rs960 billion 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.

The government currently charges about Rs77 per litre tax on both petrol and HSD. Although the general sales tax is zero on all petroleum products, the government charges Rs60 per litre PDL on both products, which normally impacts the masses. The government is also charging about Rs17 customs duty on a litre of petrol and HSD, irrespective of their local production or imports.

Petroleum and electricity prices have been the key drivers of high inflation. Petrol is mostly used in private transport, small vehicles, rickshaws and two-wheelers.

On the other hand, an increase in diesel’s price is considered highly inflationary as it is mostly used in heavy transport vehicles and particularly adds to the prices of vegetables and other eatables.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

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Copyright for syndicated content belongs to the linked Source : Dawn.com – https://www.dawn.com/news/1846005/govt-hikes-petrol-price-by-rs999-hsd-by-rs618

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