Petrol, diesel prices likely to jump by up to Rs5

Islamabad: Petrol and diesel prices are expected to increase by about Rs1 and Rs5 per litre respectively in the next fortnight ending June 30 due to rising global prices.

Based on current tax rates, it is reported that the final ex-depot price of petrol on June 15 is expected to increase by about Rs1 per litre, while high-speed diesel (HSD) is likely to increase by Rs5 per litre.

The current ex-depot price of petrol is Rs252.63 per litre. Petrol is mostly used in private transport, small vehicles, rickshaws, and two-wheelers, and it directly impacts the budget of the middle and lower middle class.

The current ex-depot price of diesel is Rs254.64 per litre. Most of the transport sector runs on high-speed diesel. Its price is considered to be the cause of inflation, as it is mostly used in heavy transport vehicles, trains, and agricultural engines, such as trucks, buses, tractors, tube wells, and threshers, and especially increases the prices of vegetables and other food items. Despite the decline in diesel prices, transport fares rarely decrease.

The government is currently charging around Rs94 per liter on both petrol and diesel. Although the General Sales Tax (GST) on all petroleum products is zero, the government is still collecting a petroleum levy of Rs77.01 per liter on diesel and Rs78.02 per liter on petrol and high-octane products.

The government also collects a customs duty of around Rs16 per liter on petrol and HSD, whether they are produced locally or imported.

Additionally, about Rs17 per liter of distribution and sales margin is allocated to oil companies and their dealers.