The government has announced that the prices of petrol and high-speed diesel (HSD) will remain unchanged for the next fortnight. In a late-night statement on Friday, the Ministry of Finance confirmed that the price of petrol will continue to be Rs248.38 per litre, while HSD will remain at Rs255.14 per litre. The decision to keep the prices steady was based on the analysis of price variations in the international market over the past two weeks, as worked out by the Oil and Gas Regulatory Authority (Ogra).
However, the government has approved an increase in the rate of re-gasified liquefied natural gas (RLNG) for November. Ogra has notified a hike of 2.5% for SNGPL, raising the price to $13.26 per million British thermal units (mmBtu), while the price for SSGCL customers will rise by 2.7% to $12.80 per mmBtu. This increase is attributed to the rising import costs of RLNG.
In terms of taxes, the government is charging Rs76 per litre tax on both petrol and HSD. Despite the absence of a general sales tax (GST) on petroleum products, a petroleum development levy (PDL) of Rs60 per litre is applied on both petrol and HSD, which directly impacts consumers. Additionally, a customs duty of around Rs16 per litre is levied on both products, whether they are locally produced or imported. Oil companies and their dealers also benefit from Rs17 per litre distribution and sale margins.
Petrol and HSD remain crucial sources of revenue for the government, with monthly sales ranging between 700,000 and 800,000 tonnes, compared to a mere 10,000 tonnes for kerosene. The government also imposes Rs50 per litre PDL on light diesel and high-octane blending components used in luxury imported vehicles. This diverse tax structure continues to ensure the government’s reliance on these major fuel products for financial sustainability.
