Federal government on Wednesday approved an increase of upto Rs6 per litre in the prices of petroleum products for the month of March, 2018, DawnNews reported.
The price of petrol has been increased by Rs3.56 per litre, climbing to Rs88.07 from Rs84.51, and that of kerosene by Rs6.28 per litre, climbing to Rs76.46 from Rs70.18 per litre — the highest since October 2014 due to increased rates in the international market.
The price of High-Speed Diesel (HSD) has been jacked up by Rs2.62 per litre to reach Rs98.45 from Rs95.83 per litre. The price for Light Diesel Oil has been increased by Rs1.00 per litre to reach Rs65.30 from Rs64.30 per litre.
The revised rates will be implemented with effect from March 1.
Oil and Gas Regulatory Authority (OGRA) and the Ministry of Energy had proposed an increase in the prices of these products including a Rs6.94 per litre raise in the price of diesel; “however, it was increased by Rs2.62 per litre only for the benefit of the general public”, read a statement issued by the finance ministry.
Interestingly, the prices for March have been worked out on the basis of higher-than-notified tax rates on the orders of the Ministry of Finance to enable the government to announce a relatively lower rate for political objectives, Dawn had reported.
In an order, the finance ministry has ordered calculation of prices on the basis of 31 per cent GST on high speed diesel (HSD) and 17pc on all the other products. This is despite the fact that notified-GST rate on HSD at present is 25.5pc, 7.5pc on kerosene and light diesel oil (LDO) and 17pc on petrol.
In addition, the government is also charging Rs8 per litre petroleum levy on HSD, Rs10 per litre on petrol and Rs6 and Rs3 per litre on kerosene and LDO, respectively.