Petrol Price in Pakistan September 2023

ISLAMABAD: The administration led by Caretaker Prime Minister Anwaarul Haq Kakar has implemented significant price hikes for petroleum and high-speed diesel (HSD) on Thursday. The petroleum price has been raised by Rs14.91 per liter, while HSD now costs Rs18.44 more per liter.

These increases have pushed the expenses beyond the Rs300 mark, marking a historic milestone in the country’s economic landscape.

Additionally, as part of a significant policy shift, the government has opted to raise the petroleum  additional Rs5 per liter, taking it from the previous rate of Rs55 to the maximum permissible limit of Rs60 per liter.

Global Oil Prices

The recent surge in fuel prices, primarily attributed to the depreciation of the rupee and the escalating global oil prices, has occurred merely two weeks following a previous hike of Rs17.50 per liter  and Rs20 per liter for high-speed diesel (HSD).

This cumulative increase now stands at Rs31.41 per liter for gasoline and Rs38.44 per liter for HSD, taking place within a brief 15-day timeframe.

Ministry of Finance

The Ministry of Finance unveiled the updated pricing late in the evening after receiving approval from the caretaker prime minister.

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Rs5 per liter increase in the levy imposed on petrol.

petroleum prices in the global market and fluctuations in exchange rates, the government has opted to adjust the current consumer prices of petroleum products, as stated.

High-Speed Diesel (HSD)

As per the decision, the ex-depot price of high-speed diesel (HSD) has been adjusted to Rs311.84 per liter, marking an increase of Rs18.44 (or 6.3%) compared to its previous price of Rs293.40. It’s worth noting that HSD plays a critical role in the transportation sector, being a primary fuel source for heavy transport vehicles, trains, and agricultural machinery such as trucks, buses, tractors, tube wells, and threshers.

HSD Prices

This increase in HSD prices is notably inflationary and can directly impact the cost of goods, particularly food items like vegetables and other consumables.

Primary Fuel Source

As per the decision, the ex-depot price of high-speed diesel (HSD) has been adjusted to Rs311.84 per liter, marking an increase of Rs18.44 (or 6.3%) compared to its previous price of Rs293.40.

It’s worth noting that HSD plays a critical role in the transportation sector, being a primary fuel source for heavy transport vehicles, trains, and agricultural machinery such as trucks, buses, tractors, tube wells, and threshers. This increase in HSD prices is notably inflationary and can directly impact the cost of goods, particularly food items like vegetables and other consumables.

Private Transport

Similarly, the ex-depot petroleum price has been set at Rs305.36 per liter for the upcoming two-week period, compared to its previous rate of Rs290.45 per liter.

This marks a notable increase of Rs14.91 (equivalent to 5.13%). petroleum primarily fuels private transport, small vehicles, rickshaws, and two-wheelers, making it a significant factor in the financial planning of middle-class and lower-middle-class households.

Platts Oilgram Price Report

The government has refrained from altering the prices of kerosene and light diesel oil.Notably, as reported by the Platts Oilgram Price Report, the price of high-speed diesel (HSD) in the Middle East experienced an increase from $113 per barrel on August 16 to $118.2 on August 30, reflecting a rise of approximately 4.6%.

Concurrently, the price of petroleum exhibited a substantial surge from $98.5 per barrel on August 16 to $117 on August 30, signifying an impressive increase of nearly 19%. Additionally, the dollar-rupee exchange rate, which stood at Rs293.6 on August 16, climbed to Rs305, marking an almost 4% increase.

Currently, there is no general sales tax imposed on any petroleum products. However, the government applies a Rs55 per litre Petroleum Development Levy (PDL) on petroleum, along with Rs50 per litre on both high-speed diesel (HSD) and high-octane blending component (HOBC), as well as 95 RON (research octane number) petroleum.

Additionally, the government levies approximately Rs18-22 per litre in customs duty on both petroleum and HSD.