Petrol, HSD prices rise due to combined impact of taxes, OMCs’ margins

ISLAMABAD: The combined impact of taxes and Oil Marketing Companies (OMCs) margins, accounting for 68 percent of ex-depot prices, has resulted in a Rs 3.72 per litre increase in petrol and a Rs 3.29 per litre increase in High Speed Diesel (HSD), effective from December 1, 2024.

Current petrol price is set at Rs 252.10 per litre and HSD price is Rs 258.43 per litre. Brent crude settled 2 cents higher at $ 72.83 a barrel while US West Texas Intermediate crude slipped 5 cents to $ 68.72 from November 16-29.

The ex-refinery price for current fortnight ending on December 15 has increased by Rs 1.97 per litre from R 164.86 to Rs 166.83 for petrol and only 7 paisa on HSD from Rs 176.69 to Rs 176.76 per litre.

The remaining difference is attributed to factors such as exchange rate fluctuations, Inland Freight Equalization Margin (IFEM) and dealers’ margins which is 68 percent of total petrol and HSD prices. Petroleum Levy (PL) has been retained at Rs 60 per litre on both petroleum products, petrol and HSD since September 1, 2023; petroleum products were exempted from general sale tax (GST) since February 2022.

Copyright Business Recorder, 2024