ISLAMABAD: Prices of all key petroleum products are estimated to go up by Rs6-12 on Tuesday (today) for the next 14 days, mainly because of higher international oil prices and application of additional petroleum levy.

February 16, 2022 - By admin

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Benchmark crude oil prices increased from $ 92 per barrel to $ 95 for the past two weeks while the exchange rate increased slightly Informed sources say that based on existing tax rates, import parity prices and exchange rates, gasoline prices (gasoline motorbikes) and high-speed diesel (HSD) have been done to rise around RS8.35 and RS6 per liter, respectively. Likewise, the price of kerosene and light diesel oil (LDO) is estimated to rise around RS6 and RS5.5 per liter, respectively.

The government has on January 31 postponing additional implementation of RS4 per liter Petroleum Levy (PL) to commitment made with the International Monetary Fund (IMF). The government has also reduced sales tax rates on all products to keep prices unchanged Therefore, if the government decided to restore the practice of monthly improvement in PL, the increase in the selling price of ex-depot gasoline is estimated at around RS12.35 per liter, followed by RSD for HSD.

However, an official said that while Prime Minister on January 31 rejected a work paper looking for the increase in the price of petroleum products, the economic team wants to take part in international price trends with the revival of a monthly increase that is committed to keeping the course. As a subsequent quarterly review of the IMF program within a few weeks At present, general sales tax is zero on all major products, including gasoline, HSD, kerosene and LDO, against 17 percent of GST normal. On the other hand, the government imposes RS13.92 per liter on gasoline, RS9.30 on HSD, RS5.50 in LDO, Re1 on kerosene and RS30 on high octane blending components.

The government has increased Levy Petroleum and GST based on two-month alternatives in the past few months as part of the dialogue with the IMF, but has slightly reduced GST on major products on January 15 and then on January 31. The government has increased the level of PL eleven in the first month, except for the current month, as part of the commitment to the IMF to bring it to the maximum RS30 per liter.

The price of ex-depot gasoline is currently at RS147.83 per liter and HSD at RS144.62. Gasoline is largely used in private transport, small vehicles, rickshaws and two-wheeled and have direct bearings on the middle and medium-class budgets, while HSD prices are considered very inflation because most are used in heavy transport vehicles, trains and agricultural machines such as trucks, buses, Tractors, wells and awareness.

The price of the current EX-Depot LDO is RS114.54 per liter and the kerosene level is RS116.48. LDO is consumed by flour mills and several power plants, while kerosene is mostly used by immoral elements to mix it with gasoline and to some extent for lighting in a very remote area Gasoline and HSD are two main products that produce most of the revenue for the government because of their large consumption and have not grown in the country. The average sales of gasoline touches 750,000 tons per month against monthly consumption of around 800,000 tons of HSD. Kerosene and LDO sales are generally less than 11,000 and 2000 tons per month.

Under the new mechanism, oil prices are revised by the government every two weeks to continue international prices published in Platt’s Oilgram instead of the previous monthly calculation mechanism based on the cost of Pakistani state oil imports.