By Muhammad Luqman
Pakistan’s government has increased the prices of all petroleum products by up to Rs26.58 to share the impact of rising international prices with the consumers.
“The decision to revise the prices of petroleum products upwards was taken “in view of the rising oil prices trend in the global market”, the statement issued by the Finance Division said on Friday.
The price of petrol (motor spirit) has been raised by a whopping Rs25.58 to Rs100.10 per litre from the previous Rs74.52, showing an increase of 25.6 per cent.
The price of high-speed diesel (HSD) has been hiked to Rs101.46 per litre from the current price of Rs80.15 with an increase of Rs21.31.
The new price of kerosene oil (SKO) will be Rs59.06, a rise of Rs23.50 over the existing Rs35.56.
Meanwhile, the price of light diesel oil (LDO) has been pushed up by Rs17.84 to Rs55.98 from the current Rs38.14.
Last month, the prices of all petroleum products except high speed diesel, had been reduced to pass on the impact of massive international price reduction to the the consumers.
The government has already increased the general sales tax (GST) on all petroleum products to a standard rate of 17pc across the board to generate additional revenues. Until January last year, the government was charging 0.5pc GST on light diesel oil (LDO), 2pc on kerosene, 8pc on petrol and 13pc on HSD, English newspaper, Daily Dawn reported.
Besides the 17pc GST, the government has almost quadrupled the rate of petroleum levy on HSD and petrol to Rs30 per liter from Rs8 per liter in January last year.
The petrol and HSD are two major products that generate most of revenue for the overnment because of their massive and yet growing consumption in Pakistan.
In neighbouring India, petrol prices are also surging, According to NDTV report, the prices of both petrol and diesel have crossed the mark of Indian rupee 80 per litre ( 177 Pak rupees).
By Muhammad Luqman