Petrol prices increased by Rs 2.70 per litre

Petrol prices increased by Rs 2.70 per litre

The federal government on Sunday notified an increase of Rs.2.70 per litre in the price of petrol for the first half of February.

Prime Minister Imran Khan has approved an increase of Rs2.88 per litre in the price of high-speed diesel (HSD).

Additionally, the prices of kerosene and light diesel oil were also increased by Rs3.54 per litre and Rs 3.00, respectively.

This is the fourth time in six weeks that fuel prices have been increased.

Over the last few months, the government has been increasing petroleum levy rates instead of GST as levy remains in the federal kitty while GST goes to the divisible pool taxes and thus about 57pc share is grabbed by the provinces.

Petrol and HSD are two major products that generate most of the revenue for the government because of their massive and yet growing consumption in the country.

Average petrol sales are touching 700,000 tonnes per month against the monthly consumption of around 600,000 tonnes of HSD. The sales of kerosene oil and LDO are generally less than 11,000 and 2,000 tonnes per month, respectively.