ISLAMABAD: The price of petrol and high-speed diesel (HSD) is expected to go up starting July 16th. This increase is due to rising global oil prices.

Reports indicate that global crude prices have increased by around $4 per barrel in the last two weeks, while HSD prices have risen by $2 per barrel. Premium on petrol is estimated at $8.76 per bbl and $6.50 per bbl.

This rise in international prices is expected to translate to a domestic increase of Rs7.55 per litre for petrol and Rs3.52 per litre for HSD.

The expected new price for petrol will be Rs273.16 per litre up from Rs265.61. HSD may increase to Rs280.97 per litre from Rs277.45.

Kerosene oil and Light Diesel Oil (LDO) are also expected to see price hikes. Kerosene oil and LDO are expected to tick up by Rs2.39 and Rs0.92 per litre, respectively. Kerosene oil may increase to Rs184.25 from Rs181.86, and LDO to Rs166.65 from 165.

The government has raised the maximum limit on Petroleum Levy (PL) to Rs70 per litre. This is a contingency measure to generate additional revenue, but they claim there is no immediate plan to implement the full levy. Currently, the government charges around Rs60 per litre PL on both petrol and HSD, with zero General Sales Tax (GST) applied to petroleum products.

Copyright Business Recorder, 2024

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