ISLAMABAD: Pakistan State Oil (PSO) witnessed a decrease in the cost of supplying fuel; however, the government decided to implement price hikes for both petrol and high-speed diesel (HSD) for the first half of November.

The cost of supplying petrol has declined by Rs 3.23 per liter, and HSD has become 23 paisa per liter cheaper for PSO.

Despite this reduction in supply costs, the government has opted to increase prices for consumers. This adjustment comes after a recent decrease in global fuel prices.

On Thursday, the Finance Division had announced a Rs 1.35 per litre hike in petrol prices and a Rs 3.85 per litre increase in HSD prices for the first half of November 2024.

However, the government decided to partially offset this decline. The document reveals that the government has allowed a 40 paisa increase in petrol prices and a 96 paisa increase in HSD prices under exchange rate adjustments.

The petroleum levy (PL) on both petrol and HSD remains at Rs 60 per litre, and the general sales tax (GST) is zero.

Additionally, the government has increased Inland Freight Equalization Margin (IFEM) for both petrol and HSD. The IFEM for petrol was raised from Rs 3.72 per litre to Rs 7.79 per litre, while the IFEM for HSD was increased from Rs 1.04 per litre to Rs 4.17 per litre.

Copyright Business Recorder, 2024