The federal government on Saturday kept the price of petrol unchanged, but increased the price of high-speed diesel by Rs6 per litre for the next fortnight.
According to a notification from the Finance Division, the new HSD price is Rs284.44 per litre. The prices will come into effect on November 16.
“The government has revised the prices of the petroleum products following input from the Oil & Gas Regulatory Authority (OGRA) and the relevant ministries.”
Most of the transport sector runs on HSD and its price is considered inflationary as it is mostly used in heavy transport vehicles, trains and agricultural engines like trucks, buses, tractors, tube-wells and threshers and particularly adds to the prices of vegetables and other eatables.
Petrol is primarily used in private transport, small vehicles, rickshaws, and two-wheelers, and directly impacts the budgets of the middle and lower-middle classes.
The government charges about Rs99 per litre on both petrol and diesel. Although the general sales tax (GST) is zero on all the petroleum products, the government charges Rs79.50 per litre on diesel and Rs80.52 per litre on petrol and high-octane products on account of the petrol levy and climate support levy.
It also charges about Rs17-18 per litre customs duty on petrol and HSD, irrespective of their local production or imports. In addition, about Rs17 per litre of distribution and sales margins are going to oil companies and their dealers. Petrol and HSD dominate consumption at 700,000 to 800,000 tonnes a month compared to about 10,000 tonnes for kerosene.
Petroleum levy collections reached Rs1.161 trillion in FY25 and are budgeted to rise about 27pc to Rs1.47tr in the current fiscal year.
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