The federal government on Tuesday announced a significant increase to the prices of high-speed diesel for the next fortnight, citing rising international oil rates and higher import premiums.
In a statement, the Finance Division said the prices of petroleum products had revised based on the recommendations of the Oil and Gas Regulatory Authority (OGRA) and relevant ministries. Petrol’s price has been raised by Rs. 5.36/liter, going from Rs. 266.79/liter to Rs. 272.15/liter. High-speed diesel, meanwhile, has had its price raised by Rs. 11.37/liter, from Rs. 272.98/liter to Rs. 284.35/liter.
In the last revision, on June 30, the government had similarly raised petrol prices by Rs. 8.36/liter, while the price of diesel had been increased by Rs. 10.39/liter. The consecutive jumps have raised fears of significant inflationary pressures, as petrol is widely used in motorcycles, rickshaws and private vehicles, with any price hikes squeezing middle- and lower-income households.
The price of diesel, which fuels heavy transport, agricultural machinery and trains, is particularly inflationary, impacting food transport and other essential supplies. Transporters have already started adjusting fares in response, raising costs for travelers.
Despite zero general sales tax on petroleum products, the government is collecting nearly Rs. 98/liter in total levies. These include a petroleum development levy of Rs. 78.02 on petrol and Rs. 77.01 on diesel and HOBC; a climate support levy of Rs. 2.25/liter, and customs duty of Rs. 20-21/liter applicable on both imported and locally refined fuels.