Inside Financial Markets
POL products’ prices increased - Inside Financial Markets

POL products’ prices increased

– Business Recorder

The federal government Thursday announced hike in the prices of all petroleum products up to 9.7 percent with effect from Friday (Oct 1).

The price of petrol has been raised by Rs4 per litre or 3.2 percent. The price of High Speed Diesel (HSD) is increased by Rs2 per litre or 1.6 percent. The rate of Kerosene Oil (SKO) goes up by Rs7.05 and Light Diesel Oil’s by Rs8.82 per litre or 9.7 percent.

Since September 16, 2021, it is the second time the government has announced increase in the prices of all the petroleum products.

In a late night announcement, the Finance Division stated that the government has absorbed the higher international pressure of prices through reduction in petroleum levy and the sales tax.

It further stated that the prime minister had decided against the recommendations of the Oil and Gas Regulatory Authority (Ogra) and passed on the minimum increase in prices to the consumers.

The new ex-depot price of petrol is now Rs127.30 per litre from Rs123.30 per litre. The price of HSD increased from Rs120.04 per litre to Rs122.04 per litre. The price of SKO is now Rs99.31 per litre instead of Rs92.26 per litre ahead of winter season and LDO sale price is Rs99.51 per litre, instead of Rs90.69 per litre.

The Finance Division stated that due to the increase in oil prices in the international market and exchange rate variations during last fortnight, Ogra worked out higher petroleum products’ prices.

The Ogra had recommended the federal government to increase the price of petrol by Rs5.30 per litre and HSD by Rs3.75 per litre.

The government has maintained the rate of Petroleum Levy (PL) on petrol at Rs 5.62 per litre at the level of second half of September, however rates of general sale tax (GST) is decreased to Rs 8.15 per litre from Rs 11.76 per litre. Cost of PSO/ ex-refinery price is also increase to Rs 102.77 per litre from Rs 95.41 per litre. The rate of PL on SKO is kept at Rs 2.06 per litre. The rate of GST is Rs 6.24 per litre from Rs 5.79 per litre.

Syed Zaki Hussain

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Inside Financial Markets was a joint publication of Pakistan Stock Exchange (PSX)and Society of Technical Analysts Pakistan (STAP)