ISLAMABAD: The government on Thursday announced an increase of Rs14.85 per liter in the price of petrol effective from July 1, 2022.
“In view of the fluctuations in petroleum prices in the international market and exchange rate variation, the government has decided to apply petroleum levy partially and revise the existing prices of petroleum products as agreed with the development partners,” a statement released by the Finance Ministry stated.
The price of petrol has been increased from Rs233.89 per liter to Rs.248.74 per liter. Likewise, the price of high speed diesel has been increased from Rs263.31 to Rs276.54, an increase of Rs13.23 per liter.
Similarly, the price of kerosene oil has been increased by Rs18.83 per liter, from Rs211.43 to Rs230.26 whereas the price of light diesel oil (LDO) has been increased by Rs18.68 per liter, from Rs207.47 to Rs226.15.
Earlier on Wednesday, the government passed Rs50 PL for every litre of petroleum products in the Finance Bill 2022-23 as demanded by the International Monetary Fund (IMF). The ex-depot prices of both fuels have been calculated based on their international market rates from June 14-28.
During the period under review, the price of crude oil fell by $2.59/barrel; however, the price of products i.e., diesel and petrol went up by $3.66 per barrel.
The fall in the prices of crude oil won’t benefit the consumers in the domestic market as the prices of diesel and petrol are linked to the global prices of these products rather than crude oil under the import parity price (IPP) mechanism.
Various reports have stated that the government won’t impose GST. However, if slapped, it wouldn’t be charged at the high rate of 17% in the next fortnight and would be increased gradually.