ISLAMABAD: The masses, already suffering from high inflation, are about to get yet another shock as the cost of petroleum items projected to surge by up to Rs16 per liter starting from September 16.
Petrol prices have surpassed the historic Rs300 per liter level for the first time in the nation’s history after the caretaker administration approved price increases for both diesel and gasoline. The ex-depot price is expected to climb from the current Rs305.36 to Rs321.35 per liter, adding to the burden on citizens.
Estimates from the oil industry predict that the price of gasoline will increase by Rs 15.99 per litre, high-speed diesel (HSD) by Rs 13.66 per litre, kerosene oil by Rs 8.79 per litre, and light diesel oil (LDO) by Rs 4.45 per litre during the upcoming fortnight of September. These calculations are based on the current government levies on petroleum products, including the petroleum levy (PL), which is in accordance with IMF requirements and is levied at a rate of Rs. 55 per liter on gasoline and Rs. 50 per liter on high-speed diesel.
Moreover, the caretaker government may contemplate elevating the petroleum levy rate to Rs60 per liter for diesel, fulfilling its commitment to the IMF. The government also collects Rs60 per liter in petroleum levy on High-Octane Blending Component (HOBC). In August, the government amassed a substantial Rs75 billion from oil consumers through petroleum levy charges, with similar collections anticipated for September.
If the hike is approved, the price of HSD may go up to Rs325.50 per liter from Rs311.84 per liter.
