ISLAMABAD: The federal government Thursday allowed a substantial raise in the prices of petroleum products, ie, up to Rs 13 per litre with effect from March 16-31.
In a fortnight review of petroleum products, the price of petrol has been raised by Rs 5 per litre. After the increase, the new price is Rs 272 per litre. Petroleum Levy (PL) on petrol is at maximum level of Rs 50 per litre.
The price of high speed diesel (HSD), which has inflationary impact, has also been increased by Rs 13 per litre. The price of HSD is now Rs 293 per litre which was Rs 280 in first half of March. The government has raised PL on HSD by Rs 5 per litre from Rs 45 to Rs 50 per litre, sources in Petroleum Division said.
However, no notification has been issued till filing of this report. The price of kerosene oil (KERO) has also been increased by Rs 2.56 per litre, ie, from Rs 187.73 to Rs 190.29 per litre. However, the price of light diesel oil (LDO) has been kept unchanged.
In a statement, the Finance Division states that in the last fortnight, Platts Singapore prices registered an increase. This along with a depreciation of Pak rupee has resulted in an increase of POL products’ prices. The increase in price of kerosene oil has been kept at Rs 2.56 per litre by reducing government dues on it. Price of LDO has been kept constant by adjusting government dues as well.
On Wednesday, Oil Marketing Companies (OMCs) had estimated that the Pakistan State Oil (PSO) has asked for exchange rate adjustment of Rs5 per litre on petrol and Rs11 on HSD with effect from March 16-31. The US dollar against Pakistan rupee went up by Rs15.97 in the last 15 days, ie, from Rs262.14 to Rs278.11.
The average Brent Oil price was around $72 per barrel. The OMCs also worked out the price of KERO, saying it should be raised by Rs11 per litre, ie, from Rs187.73 to Rs199.47 and LDO by Rs2.28 per litre, ie, from Rs262.14 to Rs278.11 per litre.
Copyright Business Recorder, 2023