Price of petrol hiked by Rs3.2, diesel by Rs2.95.

Byline: Khaleeq Kiani

ISLAMABAD -- With sufficient oil-related revenue in the kitty, the government on Friday increased the prices of all petroleum products by three per cent to 6pc for the next 16 days.

According to an announcement by the finance ministry, the ex-depot prices of petrol and high speed diesel (HSD) were increased by Rs3.20 and Rs2.95 per litre, respectively. The prices of kerosene and light diesel oil (LDO) were jacked up by Rs3 and Rs4.42 per litre, respectively.

In doing so, the government slightly increased petroleum levy on petrol, kerosene, and LDO. The levy on HSD was kept unchanged and simply the impact of higher international price was passed on to consumers.

The ex-depot price of HSD was increased to Rs113.19 per litre from Rs110.24, showing an increase of Rs2.95 (2.67pc). HSD is mostly used in heavy transport vehicles, trains and agricultural engines like trucks, buses, tractors, tubewells and threshers. This is one of the key contributors to inflation.

The ex-depot price of petrol was raised to Rs109.20 per litre from Rs106, showing an increase of Rs3.20 (2.90pc). Petrol is mostly used in private transport, small vehicles, rickshaws and two-wheelers.

The ex-depot price of kerosene was increased by Rs3 per litre (4.07pc) to Rs76.65 from Rs73.65. Kerosene oil is mostly used by unscrupulous elements for mixing it with petrol and to some extent for lighting in very remote areas.

The ex-depot rate of LDO was increased by Rs4.42 (6.15pc) per litre to Rs76.23 from Rs71.81. LDO is consumed by flour mills and a couple of power plants.

In revising the prices of petroleum products, the government increased the levy on petrol by about 80 paisa per litre. An official said the government had collected about 33pc higher than targeted revenue on petroleum products through the levy in the first six months of the current fiscal year. Therefore, it was comfortable with minor adjustments in petroleum levy.

In this way...

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