The federal government on Monday notified an increase in the prices of all petroleum products for the next fortnight, citing an increasing trend in the global market, with petrol to now cost consumers Rs. 265.61/liter.
According to a notification issued by the Finance Division, the new prices were devised by the Oil and Gas Regulatory Authority (OGRA) based on “price variations” in the international market. “There will be no change in the applicable taxes and duties, which will remain at existing level,” it said, referring to concerns that the new prices reflect the government’s decision to increase the petroleum development levy (PDL) from the existing Rs. 60/liter to Rs. 70/liter. Addressing media on Sunday, Finance Minister Muhammad Aurangzeb claimed the duties would be applied gradually over the coming year.
The new consumer price for petrol from July 1-15, per the notification, is fixed at Rs. 265.61/liter, a 2.9% (Rs. 7.45/liter) hike over the previous price of Rs. Rs. 258.16/liter. Similarly, the price of high-speed diesel has been raised by Rs. 9.56/liter, a 3.6% increase, going from Rs. 267.89/liter to Rs. 277.45/liter.
The new prices are anticipated to boost inflation, which had been on the decline over the past three months. Petrol is primarily used in private transport and has a direct impact on the middle and lower-middle classes, while most of the transport sector relies on diesel, triggering inflationary pressures on agricultural products as well as other commodities.