ISLAMABAD:
Diesel and petrol prices increased by Rs 2.96 per liter and Rs 0.56 per liter respectively during the next 15 days of the New Year, while the price of liquefied petroleum gas (LPG) reduced by 4 .01 rupees per kilogram. on Tuesday.
According to a notification from the Ministry of Finance, the Oil and Gas Regulatory Authority (Ogra) calculated the consumer prices of petroleum products taking into account the fluctuations in the international market during the last fortnight.
Accordingly, as per the notification, the price of High Speed Diesel (HSD) has been increased by Rs 2.96 per litre, from Rs 255.38 to Rs 258.34 per litre. Similarly, the price of motor petrol (MS) or petrol increased by Rs 0.56 per liter from Rs 252.10 to Rs 252.66 per litre.
High-speed diesel is widely used in the transportation and agriculture sectors. Therefore, a new increase in its price could have an inflationary impact. Gasoline is used in motorcycles and cars. The government has not made a significant increase in its price, but it could have an impact on consumers.
Gasoline is also an alternative fuel to compressed natural gas (CNG) and its demand has increased in Punjab province, especially due to the ban on the use of indigenous gas for several years. CNG consumers in this province use imported gas, which is expensive.
Simultaneously, Ogra issued a separate notification announcing a reduction of Rs 47.43 or 1.58% in the price of a 11.8 kg LPG cylinder, effective January 1, 2025. Accordingly, the new price of a domestic LPG cylinder will be Rs 2,953.36 in January. 2025, compared to Rs 3,000.79 in December 2024.
Ogra said the LPG producer price was linked to the Saudi Aramco-CP and the dollar exchange rate. Compared to the previous month, the Saudi Aramco-CP decreased by 2%, while the average dollar exchange rate increased slightly by 0.12%, resulting in a decrease in the consumer price of LPG.
According to officials, the premium for petroleum products was $8.69 per barrel, which also contributed to the rise in diesel and gasoline prices. In addition, consumers also paid a tax of Rs 60 per liter on petrol and diesel. The oil tax goes to the federal treasury.
The price increase calculation was based on the current level of petroleum tax, general sales tax (GST) and zero exchange rate. The inland freight clearing margin (IFEM) is expected to remain at Rs 7.92 per liter for petrol and Rs 4.18 per liter for diesel, they added.
(WITH INPUT FROM THE APP)
