The federal government on Saturday raised partially the ex-depot prices of petroleum products up to Rs 3.33 per litre with effect from January 16.

Finance Division announced to increase the ex-depot price of petrol by Rs 3.01 per litre. The ex-depot prices of High-Speed Diesel (HSD) and Kerosene Oil (SKO) are increased by Rs 3 per litre. The ex-depot rate of Light Diesel Oil (LDO) is also increased by Rs 3.33 per litre.

The division in a statement says that against the recommendations of the Oil and Gas Regulatory Authority (OGRA) for an increase of Rs 5.52 per litre in petrol and Rs 6.19 per litre in HSD prices, the Prime Minister has directed to absorb the international prices through a further cut in sale tax from last fortnight. The Finance Ministry will take Rs 2.6 billion revenue hit due to reduced sale tax.

“The government has decided to make a partial increase in the prices of the petroleum products in order to provide relief to the end consumers. The new price of petrol is Rs 147.83 per litre which was Rs 144.82 per litre in first fortnightly.

The price of HSD is raised from Rs 141.62 per litre to Rs 144.62 per litre. The rate of SKO is Rs 116.48 per litre which was Rs 113.48 per litre. LDO is also increased to Rs 114.54 per litre from Rs 111.21 per litre.

The petroleum products are showing fourth straight weekly gain and witnessed an increase of 6.2 per cent just in last week in the international market. Presently, at the highest level since last year. The existing sale tax rate and petroleum levy (PL) on various petroleum products are much below the budgeted targets.

The government had already revised its budgeted PL target for the current financial year from Rs 610 billion to Rs 330 billion and on Friday Energy Minister Hammad Azhar told Business Recorder that an estimated Rs 200 billion were collected under PL head.

The story was originally published in Business Recorder on January 16, 2022.