High-speed diesel (HSD), another essential fuel, is anticipated to see a price decrease of up to Rs2 per litre.
The upcoming review may raise the price of petrol over Rs290, given that it currently costs about Rs280 per litre ex-depot.
According to knowledgeable sources, the geopolitical environment has caused the import price of gasoline to rise by around $4 per barrel, and the import premium to grow to $13.5 per barrel from $12.15 a fortnight ago. As a result, depending on the final exchange rate computation, the price of gasoline is predicted to increase by Rs. 10–11 a litre.
However, the price of HSD was lower on the global market, and Pakistan State Oil (PSO) continued to pay the same $6.50 per barrel import premium. As a result, it was projected that the price of high-speed diesel will decrease from Rs1.30 to Rs2.50 per litre, contingent on the final exchange rate adjustment.
According to officials, during the previous two weeks, the price of gasoline increased by around $4 per barrel to $94.5, while the price of HSD decreased by about 60 cents per barrel to $98.4. The rupee has gained almost 1 per dollar to $278.6 during the past two weeks, indicating an improvement in the exchange rate as well.
The maximum legal amount that can be charged by the government on gasoline and HSD is a petroleum development levy (PDL) of Rs60 per liter. According to agreements with the International Monetary Fund (IMF), the government's budget goal for the current fiscal year is to collect Rs869 billion in PDL.
Although the annual target has now been lowered to Rs920bn, it has already collected around Rs475bn in the first half of the fiscal year (July-December) and is likely to collect nearly Rs970bn by the end of the fiscal year.
The main causes of the high rate of inflation have been the cost of energy and petroleum. The majority of private transportation, tiny cars, rickshaws, and two-wheelers run on gasoline, which has a direct impact on middle-class and lower-class people's budgets.
However, as HSD is largely utilized in heavy machinery, railroads, and agricultural engines such as tube wells, threshers, trucks, buses, and tractors, a rise in its price is regarded as extremely inflationary. It also raises the cost of other food items, such as vegetables.
Currently, the government taxes gasoline and HSD at a rate of roughly Rs82 per litre.
On the other hand, no petroleum product is subject to general sales tax (GST).
The government is imposing a Rs50 charge on high-octane blending component and 95 research octane number gasoline, in contrast to Rs60 per litre PDL on both goods. Additionally, the government levies a customs fee of roughly Rs. 19–20 per litre on gasoline and HSD.
The two fuels are the main sources of income, with monthly sales totaling about 700,000 to 800,000 tonnes compared to 10,000 tonnes of monthly demand for kerosene.
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