ISLAMABAD: The interim government on Friday hiked once again the prices of petroleum products up to Rs 18.44 per litre with effect from September 1, further burdening people who are already hit by inflated electricity bills.

In a late night statement, Finance Division announced a massive increase in the price of petrol by Rs 14.91 per litre and high speed diesel (HSD) by Rs 18.44 per litre for first fortnight of September.

The new ex-depot price of petrol has been fixed at Rs 305.36 per litre from Rs 290.45 per litre and HSD price has gone up to Rs 311.84 from Rs 293.40 per litre.

The petroleum levy (PL) on petrol has increased from Rs 55 to Rs 60 per litre or Rs 5 per litre. Sources in petroleum division said that the rate of PL on HSD has also revised but not notified till filing of the story. There is no general sale tax (GST) on petroleum products.

Another fuel price hike on the cards

The finance division however, attributed the rise in the price of petroleum products as a result of increasing trend of oil in international market and exchange rate variations.

The government had already increased the price of petrol by Rs 37.50 per litre and HSD by Rs 40 per litre in last two reviews of petroleum product prices.

With the exchange rate impact of Rs12 after the increasing US dollar’s value from August 16, 2023 which was Rs 288.25 to Rs 299.76 on August 31, 2023 coupled with a slight increase of oil in the international market, the government decided to pass on the impact to general public, oil sector expert said.

The price of kerosene oil has also been raised to Rs 302.86 per litre from Rs 287.96 per litre or Es 14.90 per litre increase. The finance division did not mention raise in the price of kerosene oil in the announcement of new prices of petroleum products.

Copyright Business Recorder, 2023