The government announced another increase in petroleum product prices on Thursday, bringing the total amount of price increases since May 26 to Rs. 126 per litre.
Petrol will now cost Rs. 248.74 per litre, followed by high-speed diesel at Rs. 276.54 per litre, kerosene oil at Rs. 230.20 per litre, and light diesel at Rs. 226.61 per litre, according to the announcement released by the Finance Division. At midnight today, the new pricing will take effect.
According to the announcement, there is a petroleum levy of Rs. 10 on gasoline and Rs. 5 on each of the other items.
The government has decided to partially apply a petroleum levy and revise the current prices of petroleum products as agreed with the development partners, according to a statement from the Finance Division. “In view of the fluctuations in petroleum prices on the international market and the exchange rate variation,” the statement continued.
| Product | Existing Prices w.e.f 16-06-2022 | New Prices w.e.f 01-07-2022 | PL | Increase/Decrease |
| MS (Petrol | 233.89 | 248.74 | 10.00 | +14.85 |
| High-Speed Diesel (HSD) | 263.31 | 276.54 | 5.00 | +13.23 |
| Kerosene (SKO) | 211.43 | 230.26 | 5.00 | +18.83 |
| Light Diesel Oil | 207.47 | 226.15 | 5.00 | +18.68 |
In this context, it is important to note that the federal government has set a goal of collecting Rs. 750 billion from the Petroleum Development Levy (PDL) in the fiscal year 2022–2023 (FY23).
In order to boost the cost of petroleum products, the government and the International Monetary Fund (IMF) have agreed on a timetable that includes a PDL of Rs. 50 per liter and a general sales tax (GST) of 17% for the fiscal year (FY) 23.
For the sake of reviving the delayed loan program, the government and IMF have agreed on a timeline for the imposition of GST and PDL on petroleum goods from July 1, 2022, until June 1, 2023.
Prior to the rise on May 26, the cost of gasoline and high-speed diesel was, respectively, Rs. 149.86 and Rs. 144.15 per litre. Kerosene and light diesel oil were similarly priced at Rs. 125.56 and Rs. 118.31 a litre, respectively.
To read our blog on “Due to IMF pressure, Petroleum prices are likely to rise from 1st July,” click here
