Petrol prices likely to rise from July 16

ISLAMABAD: Due to higher global oil prices, the price of petrol and high-speed diesel are also expected to rise by Rs 7 with effect from July 16 for the next fortnight.

The price increase will be effective for the next 15 days, starting from July 16.

According to reports, the prices of petrol and HSD had increased in the international market by about $4.4 and $2 per barrel, respectively, in the last fortnight. Depending on final calculation and existing tax rates, the prices of petrol is expected to rise by Rs7.60 per litre and that of HSD by Rs3.50 from July 16.

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After implementation of the new prices, the per liter price of petrol will become Rs273.29 and the price of diesel will become Rs281.17 per liter.

The government has jacked up the maximum limit of petroleum development levy (PDL) to Rs70 per litre in the Finance Bill to collect Rs1.28 trillion in the current fiscal year against Rs960bn collection during the previous year, almost Rs91bn higher than the Rs869bn budget target.

The government currently charges about Rs77 per litre tax on both petrol and HSD. Although the general sales tax (GST) is zero on all petroleum products, the government charges Rs60 per litre PDL on both products, which normally impacts the masses. The government is also charging about Rs17 customs duty on a litre of petrol and HSD, irrespective of their local production or imports.