ISLAMABAD: The government on Monday increased the prices of petrol and diesel by Rs8.36 and Rs10.39 per litre, respectively, for the next fortnight ending July 15, owing to higher international prices following Israeli attacks on Iran.

In a late-night announcement, the Ministry of Finance said the Oil andGas Regulatory Authority (Ogra) had reviewed and adjusted prices for petroleum products in view of fluctuations in the international market.

The ex-depot price of high speed diesel(HSD)wasincreasedbyRs10.39 per litre (four per cent) to Rs272.98 per litre from Rs262.59. Most of the transport sector runs on HSD and its price is considered inflationary as it is mostly used in heavy transport vehicles, trains and agricultural engines like trucks, buses, tractors, tube-wells and threshers and particularly adds to the prices of vegetables and other eatables. Transport fares seldom come down despite lower diesel rate.

The ex-depot price of petrol was set at Rs266.79 per litre against Rs258.43, up by Rs8.36 or 3.3pc.

Petrol is mostly used in private transport, small vehicles, rickshaws and two-wheelers and has a direct bearing on the budget of middleand lower-middle class.

At present, the government is charging about Rs100 per litre tax on both petrol and HSD, with fresh imposition of Rs2.5 per litre climate support levy with effect from July 1. Although general sales tax (GST) is zero on all petroleum prod-ucts, yet the government is charging Rs78 per litre petroleum development levy (PDL) on petrol, diesel and high-octane products that normally impact the masses.

The government is also charging about Rs19 per litre customs duty on petrol and HSD, irrespective of their local production or imports. In addition, about Rs17 per litre distribution and sale margins are going to oil companies and their dealers.

LPG price cut On the other hand, Ogra notified a decrease in the price of liquidpetroleum gas (LPG) by Rs7.51 per kg or 3.1pc for the month of July.

Ogra notified the new price for 11.8kg cylinder at Rs2,750.60 for July against Rs2,838.31 for June. It said the LPG producer price was linked with Saudi Aramco-CP and US dollar exchange rate.

As compared to previous month, Saudi Aramco-CP price has decreased by 4.29pc, while the average dollar exchange rate slightly increased by 0.47pc, resulting in a decline in the LPG consumer price by Rs88.71 per 11.8kg cylinder (3.1pc).