Price of petroleum products likely to increase by Rs8.5 per liter

Islamabad: In view of the growing tension in the Middle East, due to high prices in the global market, the price of petrol and diesel in the country for the next 15 days from April 16 is likely to increase by about Rs2.5 and Rs8.5 per liter respectively, although, there has been a reduction in import premium and marginal improvement in the exchange rates, reportedly.

According to the media reports, it is stated quoting sources that the prices of petrol and diesel in the international market have increased by $4 and $4.50 per barrel respectively.

According to these data, the price of petrol in the country may increase by 2.50 to 2.80 rupees per liter, while the price of diesel may increase by Rs8 to Rs8.50 per liter.

The premium on petrol imports has declined by about 21% to $10.7 a barrel in the last two weeks from $13.50 in the last few days of March, and the rupee is about Rs0.40 stronger against the dollar. It has reached 278.20 rupees.

The current price of petrol at Rs289.41 may increase by around Rs2.80 per liter. On the other hand, the price of diesel in the international market has increased and the import premium paid by Pakistan State Oil (PSO) remained at $6.50 per barrel.

The global petrol price rose by about $4 to settle at $98.50 a barrel last week, while diesel rose $4.50 to $102.90 a barrel, officials said.

Almost two weeks ago, the government had increased the price of petrol by Rs9.66 per liter and reduced the price of diesel by Rs3.32 per liter till April 15.

It is also worth mentioning here that the government is already charging a development levy of Rs60 per liter on both petrol and diesel, which is the maximum limit under the law.

The reason for the collection of levy is that the government has to collect 869 billion rupees for petroleum levy in the current fiscal year as per the commitment made with the International Monetary Fund (IMF).

The government has collected Rs475 billion during the first half of the current fiscal year (July-December). The government expects to collect around Rs 970 billion by the end of the fiscal year, though the revised target has been set at Rs920 billion by the end of June.

Currently, the government is charging a tax of around Rs82 per liter on both petrol and diesel.