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ISLAMABAD: Interim government on Thursday decide to raise the ex-depot prices of petroleum products up to Rs 8.37 per litre for fortnight starting from February 16, 2024, owing to increase global oil prices and exchange rate adjustment. The price of petrol has been increase by Rs 2.73 per litre, while rate of high speed diesel (HSD) by Rs 8.37 per litre.

In a late night announcement, Finance Division said:”Government has decided to bring changes in the current prices of Petroleum products for the fortnight starting from 16th February 2024, as recommended by Oil and Gas Regulatory Authority (OGRA)”.

Following increase in the prices of petroleum products, the price of petrol has now been raised to Rs 275.62 from Rs 272.89 per litre. New rate of HSD is Rs 287.33 from Rs 278.96 per litre witnessed in previous fortnight.

Diesel price likely to soar, petrol may stay unchanged

Although the general sales tax (GST) is zero on all petroleum products but the government is charging Rs60 per litre petroleum levy on both products. It also charges Rs50 per litre on high octane blending components and 95RON petrol, which are deregulated petroleum products.

Globally, petrol price gone up around $1.20 per barrel to $89.9 from $88.7 per barrel in last fifteen days; whereas, HSD also increased around $3 per barrel to $101 from about $98 per bbl. Pak rupee gained by about 50 paisa against the dollar in last two week. The premium paid by PSO for securing product cargoes went down slightly for petrol from $9.5 to $9.45 per barrel. It remained unchanged for HSD at $6.5 per barrel.

The government has already achieved the maximum permissible limit of petroleum levy on both petrol and HSD to meet budgetary target of Rs869billion during the current fiscal year under the commitments made with the International Monetary Fund (IMF). It has already attained 54 percent (Rs475billion) in the first half (July-December) of total PL target. The revised target has now been set at Rs920 billion by end-June.

Copyright Business Recorder, 2024

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