Govt Raises Petrol and Diesel Prices Amid Economic Challenges

News Desk5 months ago

The interim federal government announced on Thursday a surge in the prices of both petrol and high-speed diesel, as confirmed by a notification from the Finance Division. The revised rates indicate a hike of Rs. 2.73 per liter for petrol, bringing it to Rs. 275.62 per liter, and an increase of Rs. 8.37 per liter for high-speed diesel, now priced at Rs. 287.3 per liter.

This adjustment in fuel prices comes after the recent bi-weekly review conducted by the interim government, during which both petrol and high-speed diesel prices were augmented.

Previously, petrol prices saw a rise of Rs. 13.55 per liter, reaching Rs. 272.89 per liter, while high-speed diesel experienced an increase of Rs. 2.75 per liter, reaching Rs. 278.96 per liter.

What’s Going Up?

So, petrol and HSD prices are expected to shoot up by quite a bit for the next couple of weeks. That’s because international prices for these fuels have been on the rise. Even though our currency gained a little value against the US dollar, it’s not enough to offset the increased costs. So, get ready to pay about Rs9-11 more per liter for HSD and Rs4 more per liter for petrol. And yeah, expect a slight bump in the prices of kerosene and light diesel oil too.

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Why Are Prices Going Up?

Well, it seems the global market decided to play hardball. The price of petrol went up by around $1.20 per barrel, and HSD got even pricier by about $3.5 per barrel. Despite our rupee gaining a bit of ground against the dollar, the import premiums paid by the Pakistan State Oil went up, especially for petrol.

What’s the Government Doing?

The government has already maxed out the petroleum levy at Rs60 per liter for both petrol and HSD, which they promised to the International Monetary Fund (IMF). They had a target to collect a whopping Rs869 billion from this levy during this fiscal year, and they’ve already bagged about Rs475 billion in the first half of the year. Now they’re aiming for Rs920 billion by June, hoping to hit about Rs970 billion in total.

How Does This Affect Us?

Well, brace yourselves because it’s hitting our wallets directly. Petrol is what most of us use for our cars, bikes, and rickshaws, so a price hike there means we’ll have less money for other things. And HSD, which powers those big trucks, buses, and tractors, is getting pricier too. That means the cost of transporting goods, including food, is going up, which could lead to higher prices at the market.

What About Taxes?

The government already slaps a hefty tax of about Rs82 per liter on petrol and HSD. On top of that, there’s a petroleum development levy (PDL) of Rs60 per liter for both fuels, plus Rs50 per liter on high-octane stuff. And let’s not forget the customs duty of Rs17-20 per liter on petrol and HSD.

So, get ready to pay more at the pump, folks. The caretaker government says it’s necessary given the global situation, but it’s definitely going to pinch our pockets. As we navigate these ups and downs, it’s clear that fuel prices aren’t just numbers on a pump – they affect everything from our daily commute to the cost of groceries.

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