By Staff Reporter
ISLAMABAD: The government raised fuel prices on Tuesday, increasing petrol by Rs4.07 per litre and high-speed diesel (HSD) by Rs4.04 per litre for the next two weeks, a move set to strain household budgets and fuel inflation.
The Finance Division said petrol will now cost Rs268.68 per litre, up from Rs264.61 , while HSD rises to Rs276.81 per litre from Rs272.77. The adjustments, effective immediately, follow recommendations from the Oil and Gas Regulatory Authority (Ogra) and relevant ministries.
Petrol, widely used in motorcycles, rickshaws, and cars, directly impacts middle- and lower-income households. HSD, powering heavy transport, farm equipment, and trains, is highly inflationary, driving up costs for food and essential goods.
No general sales tax is applied to petroleum products, but the government levies hefty charges, including Rs79.50 per litre on diesel and Rs80.52 per litre on petrol and high-octane products, which include a Rs2.50 per litre Customs Service Levy. Customs duties of about Rs16-17 per litre also apply to both fuels, whether imported or locally produced.
Separately, Ogra cut liquefied petroleum gas (LPG) prices by Rs6.70 per kilogramme for October. An 11.8kg LPG cylinder, used mainly for cooking, now costs Rs2,448.33 , down 3.13% or Rs79.14 from September’s Rs2,527.47.
Ogra attributed the LPG reduction to a 3.78% drop in the Saudi Aramco Contract Price, despite a 0.23% rise in the average U.S. dollar exchange rate. The LPG producer price is linked with Saudi Aramco-CP and US dollar exchange rate.
The fuel price increases add to Pakistan’s economic challenges, where inflation has eased from historic highs but continues to burden consumers. Heavy reliance on petroleum levies for revenue has sparked criticism for squeezing households and businesses, especially in rural areas dependent on diesel-powered machinery.
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