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ISLAMABAD: The federal government on Sunday announced a substantial raise in ex-depot rates of all petroleum products up to Rs 10.05 per litre with effect from July 1 to 15.

According to a statement of Finance Division, the petrol price has gone up by Rs 7.45 per litre, high speed diesel (HSD) by Rs9.56 per litre, kerosene oil (SKO) by Rs 10.05 per litre and light speed diesel (LDO) by Rs 9.88 per litre for first half of July.

Finance Division states, “There will be no change in the applicable taxes and duties which will remain at the existing level”. The division maintained that the oil and gas regulatory authority (OGRA) has worked out the consumer prices based on the prices variations in the international market.

According to Oil Marketing Companies (OMCs) estimates, the premium on both petrol and HSD has been unchanged. This price hike comes amid a surge in international oil prices. Over the past two weeks, petrol and HSD prices have increased by about $ 4.4 and $ 5.5 per barrel respectively.

The new ex-depot price of petrol has been increased from Rs 258.16 to Rs 265.61 per litre and HSD has been increased from Rs 267.89 to Rs 277.45 per litre.

The Finance Bill 2024 allows the government to raise the PL to a maximum of Rs 70 per litre, potentially generating additional revenue.

Copyright Business Recorder, 2024

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