ISLAMABAD: The government on Tuesday increased the prices of petrol and high-speed diesel (HSD) by Rs5.36 and Rs11.37 per litre, respectively, for the current fortnight (ending July 31), attributing the hike to higher international prices and import premiums.

In a late-night announcement, the Ministry of Finance said the Oil and Gas Regulatory Authority (Ogra) had reviewed and adjusted petroleum prices in light of recent global market fluctuations.

The ex-depot price of high-speed diesel has been increased by Rs11.37 per litre (4.2pc) to Rs284.35 for the current fortnight from Rs272.98.

Most of the transport sector runs on HSD, and its price is considered inflationary, as it is primarily used in heavy transport vehicles, trains, and agricultural engines, such as trucks, buses, tractors, tube wells, and threshers. This particularly adds to the prices of vegetables and other food items. Transporters have alreadyincreased theirfares.The new ex-depot price of petrol has been set at Rs272.15 per litre against Rs266.79 in the outgoing fortnight, up by Rs5.36 or 2pc. Petrol is mainly used in private transport, small vehicles, rickshaws and twowheelers, directly impacting the budgets of middleand lower-income households.

On the other hand, kerosene and light diesel oil prices have been reduced by Rs3.10 and Rs1.85 per litre, respeetively.

Currently, the government imposes no general sales tax (GST) on petroleum products but charges about Rs98 per litre in total levies on both petrol and diesel. This includes a petroleum development levy (PDL) of Rs78.02 per litre on petrol and high-octane products, and Rs77.01 on diesel, along with a Rs2.25 per litre climate support levy.

In addition, about Rs20-21 per litre is charged as customs duty on both petrol and diesel, regardless of whether they are locally produced or imported. Additionally, around Rs17 per litre is allocated for distribution and dealer margins.

Petrol and diesel are the main revenue sources for the government among petroleum products, with monthly sales of around 700,000 to 800,000 tonnes,in stark contrast to kerosene, which has a monthly demand of just 10,000 tonnes.

The government recovered about Rs1.16 trillion through the petroleum levy alone in the fiscal year 2024-25 and expects this figure to jump by about 27pc to Rs1.47tr during the current fiscal year.

RLNG prices cut for July Meanwhile, Ogra on Tuesday announced a reduction of 1.65 to 2.64 per cent in the prices of Regasified Liquefied Natural Gas (RLNG) at the transmission stage sale by the two Sui gas companies for July.

Karachi-based Sui Southern Gas Company Limited (SSGCL), which supplies gas to Sindh and Balochistan, haswhether they are locally produced or imported. Additionally, around Rs17 per litre is allocated for distribution and dealer margins.

Petrol and diesel are the main revenue sources for the government among petroleum products, with monthly sales of around 700,000 to 800,000 tonnes,in stark contrast to kerosene, which has a monthly demand of just 10,000 tonnes.

The government recovered about Rs1.16 trillion through the petroleum levy alone in the fiscal year 2024-25 and expects this figure to jump by about 27pc to Rs1.47tr during the current fiscal year.

RLNG prices cut for July Meanwhile, Ogra on Tuesday announced a reduction of 1.65 to 2.64 per cent in the prices of Regasified Liquefied Natural Gas (RLNG) at the transmission stage sale by the two Sui gas companies for July.

Karachi-based Sui Southern Gas Company Limited (SSGCL), which supplies gas to Sindh and Balochistan, hasrecorded a notable drop in distribution-stage system losses from 16.16pc to 10.6pc. On the other hand, Lahore-based Sui Northern Gas Pipelines Limited (SNGPL), which serves Punjab and Khyber Pakhtunkhwa, reduced its system losses from 8.6pc to 7.47pc until February this year.

According to the notification, the RLNG`s sale price for SNGPL at the transmission stage has been cut by 1.65pc to $10.834 per million British thermal units (mmBtu) for the current month against $11.015 in June. The sale price at the distribution stage for the company was reduced by 1.72pc to $11.58 per mmBtu for the current month against $11.78 per mmBtu in June.

Meanwhile, the RLNG sale price for SSGCL has also been decreased at the transmission stage by 2.64pc to $9.47 per mmBtu for July against $9.73 in June. The sale price at the distribution stage for the company was also reduced by 2.68pc to $10.57 per mmBtu from $10.86 last month.

Ogra attributed the price cut to a slight reduction in thedelivered ex-ship (DES) cost.

However, RLNG distribution prices for SSGCL ($10.57 per mmBtu) and SNGPL ($11.58 per mmBtu) remain significantly higher by around $2.72 and $3.73 per mmBtu respectively than the average DES cost of $7.86 per mmBtu reported by Pakistan State Oil (PSO).

This disparity is largely due to additional charges by LNG importers PSO and Pakistan LNG Limited (PLL) as well as port authorities. These include profit margins and retainage, calculated at 3.77pc of the DES price, on top of system losses of 7.4pc for SNGPL and 10.6pc for SSGCL.

The weighted RLNG basket price for July was based on 10 cargoes, all sourced under two long-term LNG contracts between PSO and Qatar Gas.

The average cost stood at about $7.85 per mmBtu, with five cargoes priced at $8.92 and four at $6.80 per mmBtu.

PLL did not import any cargo during the month, having deferred scheduled shipments due to a decline in demand.

-Khaleeg Kiani