The Federal Government increased the price of gasoline at RS5.36 per liter and that of high speed diesel (HSD) in RS11.37 for the next fortnight.
A press release from the Finance Division said that the prices reviewed were based on the recommendations of Ogra and the worried ministries.
The new gasoline price is RS272.15 per liter and RS284.35 for HSD.
The press release did not mention any change in the prices of the chest and the light diesel oil.
According to informed sources, it was projected that the ex-sports of gasoline would increase by approximately two percent to RS272.04 per liter, while HSD would probably see an increase of 2.5 percent to approximately RS279.48 per liter.
Widely used in motorcycles, rickshaws and private vehicles, gasoline has a direct impact on the budgets of average and low income households.
Diesel feeds heavy transport, agricultural machinery and trains. Its price is considered highly inflationary, influencing the cost of food and other essential goods. The transporters had already begun to adjust the rates in forecast of the expected increase.
Despite the General Sales Tax (GST) of oil derived products, the Government is currently collecting near RS98 per liter in total taxes in gasoline and diesel. This includes an oil development tax (PDL) of RS78.02 in gasoline and RS77.01 in Diesel and Hobc, along with a climate support Levy of RS2.25 per liter (CSL). In addition, a customs duty of RS20-21 per liter is collected in both fuels, whether imported or refined locally.
Petroleum marketing companies and distributors are winning around RS17 per liter as a combined distribution and retail margins.
Gasoline and diesel remain the main drivers of fuel consumption, with monthly sales between 700,000 and 800,000 tons, compared to only 10,000 tons of kerosene.
In fiscal year24, the Government collected RS1,161 billion through oil tax and aims to increase this in 27pc to RS1.470TT in fiscal year 2015. Despite zero GST, oil products continue to serve as a significant source of income.
