Govt deprives masses from full relief in petroleum prices by increasing taxes, margin on petrol, diesel

ISLAMABAD: The caretaker government while deciding the prices of petroleum products for second half of October 2023 has deprived the already burdened masses from full relief in the prices of petroleum products by increasing taxes and margin on petrol, diesel.

At midnight on Sunday, October 15, 2023, the government announced significant reduction of Rs 40 per litre in the price of petrol and Rs15 per litre in that of high-speed diesel (HSD) for the last fifteen days of on-going month of October 2023. And, the new price for petrol and diesel has been fixed at Rs283.38/litre and Rs303.18 per litre, respectively, which has gone into effect across the country from October 16, 2023.

According to finance division, “Owing to decreasing trend of petroleum prices in the international market and due to appreciation of Pak Rupee against the US dollar, the government has decided to revise the existing consumers price of petroleum products”.

Despite the announcement of massive cut in petrol & diesel prices, the government has, however, deprived the inflation-hit masses of full-relief in the per litre prices of petrol and diesel (HSD) by increasing petroleum levy on HSD, and hiking the margin of Oil Marketing Companies’ and dealers on petrol.

According to documents available with this scribe, the petroleum levy on high speed diesel has been increased by Rs.5 per liter from Rs.50 to Rs.55 per liter while the rate of levy on petrol has remained at Rs 60 per litre.

The OMC margin on petrol was increased by Rs 0.47/litre, after which the margin on petrol was fixed at Rs 7.41 per litre. Similarly, the dealers margin on petrol has also been increased by Rs 0.41 per litre and after this increase, the dealer margin has been fixed at Rs 8.23 per litre.

It is relevant to note that the OMC and dealers' margin was increased on September 16 and October 1 as well.

In the last review on September 30, the caretaker government had announced a reduction of Rs8 and Rs11 in petrol and diesel prices, taking the prices to 323.38 and 318.18 per litre, respectively, in line with rupee’s continues appreciation against the dollar as well as variations in the international prices of petroleum products.

It is pertinent to mention that the masses have been suffering greatly as a result of the inflationary trend, since they have long had to deal with skyrocketing prices for necessities and high utility costs. Effective budget management has become exceedingly difficult for people as a result of this constant inflationary pressure. A significant drop in the price of gasoline and diesel is expected to provide the people with much-needed respite, so there is some cause for optimism. By reducing the cost of production and transportation, this drop in fuel prices is anticipated to boost the economy and relieve financial pressure on the average person. Households trying to make ends meet with rising costs provide a ray of hope with the promise of lower costs in these essential areas.