Petroleum prices likely to increase from today

The government has already reached the maximum permissible limit of petroleum levy on petrol and high-speed diesel.

Petrol and high speed diesel prices are likely to increase by Rs 1 to Rs 4 per liter from today due to minor adjustments in international prices, import premium and exchange rate. 

Informed sources say that the prices of petrol and high-speed diesel have increased marginally in both directions (by 10 to 50 cents per barrel) in the international market during the last 15 days and Pakistan State Oil (PSO) has increased its price on petrol. Import premium has to be paid.

As a result, petrol prices are estimated to increase by Rs 3 to 4 per liter compared to high-speed diesel, depending on the final exchange rate calculation, while kerosene and light diesel oil prices are expected to remain stable. It is possible. Yesterday, on February 28, the value of the US dollar decreased by about 15 paise against the rupee. 

Officials say that over the past 2 weeks, petrol prices have increased by $0.5 per barrel from $89.20 per barrel to $90.78 per barrel, while the price of high-speed diesel has decreased by about 8 cents per barrel from $101.13 to $101.05. dollar per barrel. On the other hand, the rupee remained generally stable.

The premium paid by PSO to secure product cargoes increased to $10.45 per barrel for petrol in 15 days from $9.47 per barrel. For HSD, it remained at $6.5 per barrel. 

The government has already reached Rs 60 per liter petroleum levy on both petrol and high-speed diesel, which is the maximum acceptable limit under the law. 

It should be noted that the government had set a budget target of receiving 869 billion rupees in the form of petroleum levy on petroleum products during the current financial year under the commitments made to the IMF. 

About Rs 475 billion have been collected in the first half of the financial year (July-December) in this regard, although the levy per liter was gradually increased. The government expects to get Rs 970 billion by the end of this year, but the revised target has been set at Rs 920 billion by the end of June.

On the other hand, high octane blending component and 95 RON petrol are being charged Rs 50 per litre. The government is charging Rs 17 to Rs 20 per liter customs duty on petrol and HSD. Petrol and HSD are the major revenue spinners, with monthly sales of around 700,000 to 800,000 tonnes while the monthly demand for kerosene is only 10,000 tonnes.