Web Desk (LTN NEWS): On Monday, the government changed the prices of gasoline, high-speed diesel (HSD), and kerosene for the next two weeks.
The Ministry of Finance said that the prices of petrol and light diesel oil (LDO) went up by Rs6.72 and 43 paise per liter, respectively. On the other hand, the prices of high-speed diesel (HSD) and kerosene were lowered by 51 paise and Rs1.67 per liter, respectively.
The ministry of finance said, “Because of changes in the price of oil on the international market and the exchange rate, the government has decided to change the prices of petroleum products to pass on the effects to consumers.”
So, the price of petrol at the depot went up from Rs227.19 to Rs233.91, which is an increase of Rs6.72 per liter, or 3%.
The price of light diesel oil went up by a small 43 paisa per liter, from Rs191.32 to Rs191.75 per liter. This is not a big change.
On the other hand, the ex-depot price of HSD was set at Rs244.44 per liter, which is less than the current price of Rs244.95 per liter and represents a cut of 51 paise, or 0.2pc. Also, the ex-depot price of kerosene went down from Rs201.07 per liter to Rs199.40 per liter, which is a decrease of Rs1.67 per liter, or 0.8 percent.
In line with an agreement with the International Monetary Fund, the government is charging a petroleum development levy of Rs20 per liter for petrol and Rs10 per liter for HSD, kerosene, and light diesel oil (LDO).
On August 1, the government raised the price of HSD and kerosene by Rs9 and Rs5 per liter while lowering the price of petrol by Rs3 per liter. Earlier on July 14, Prime Minister Shehbaz Sharif said that prices of different goods would go down by Rs18 to Rs40 per liter because prices in other countries had gone down.
After coming to power in the second week of April, the PMLN-led coalition government cut oil prices for the first time at that time.
Between May 26 and July 1, the price of petrol went up by 66 percent, or Rs99 per liter, and the price of HSD went up by 92 percent, or Rs132.39 per liter, since May 26. Also, between May 26 and July 1, the price of kerosene ex-depot went up by 95%, to Rs230.26 per liter. In a similar way, the ex-depot price of LDO went up from Rs125.56 per liter on May 26 to Rs226.15 per liter on July 1. This is an increase of about Rs100.59 per liter or 80%.
Under the agreement with the International Monetary Fund (IMF), the government has to gradually raise the PDL on oil products until it reaches a maximum of Rs50. This will bring in Rs 855 billion during the current fiscal year.
The petroleum levy ended when the prices were changed on March 1. International prices were going up, so the PTI government decided to cut the price of gasoline by Rs10 per liter and keep it at that level for the next four months, until June 30.
Since May 15, as part of a deal with the IMF, the coalition led by the PML-N has been raising the price of gasoline. At first, they weren’t sure what to do.
At the moment, the GST is 0% on all the most important products, such as gasoline, HSD, kerosene, and LDO. Normally, the GST is 17%. The government also puts a customs duty of about Rs20 per liter on petrol and HSD.
The PTI-led government promised to raise the price of PL by Rs4 per liter on the first of every month, up to a maximum of Rs30 per liter, in December of last year. However, on February 28, they went back on their word.
