As crude oil touched the seven-year high prices in the international market, Pakistan increased the petroleum products rate by Rs3 per liter for the second half of the current month.
On Friday, the global benchmark Brent touched $86.36 a barrel, the level last seen in 2015.
In early December 2021, Brent even touched $66 per barrel, which was recorded at $84.52 per barrel on November 9, 2021. Since then, it again started inching up and on Friday it closed at $86.36 per barrel.
According to a Finance Division handout, prices of petrol have been increased by Rs3.01 per liter, diesel and kerosene by Rs3 per liter each and light diesel (LDO) price increased by Rs3.33 per liter.
According to the decision, the ex-depot price of petrol has been increased from earlier Rs144.82 to Rs147.83 per liter; high-speed diesel from Rs141.62 to Rs144.62 per liter, kerosene from Rs113.48 per liter to Rs116.48, and LDO price from Rs111.21 to Rs114.54 per liter.
The statement said: “The petroleum products are showing fourth straight weekly gain and witnessed an increase of 6.2 percent just in last week in the international market. Presently at the highest level since last year. The existing Sales Tax rate and Petroleum Levy on various petroleum products are much below the budgeted targets.”
It said that against the recommendation of OGRA for an increase of Rs5.52 per liter in petrol and Rs6.191 per liter in HSD prices, the prime minister has directed to absorb the international pressure through a further cut in sales tax from last fortnight. The Finance Ministry will take a Rs2.6 billion revenue hit due to reduced sales tax.
It is to be noted that the consumers in remote areas use kerosene for cooking where gas is not available. The LDO is being consumed by flour mills and a couple of power plants.
The government had increased the prices of petrol and diesel by Rs4 per liter each for the last fortnight. Prices of kerosene and LDO were also increased by Rs3.95 and Rs4 per liter, respectively.
