Petrol prices to go up by over Rs 3 from May 1st

ISLAMABAD: The government has decided to increase the prices of high-speed diesel (HSD) and petrol by more than Rs 5 and Rs 3 per litre respectively for the next month following hike in global oil prices, effective from May 1st.

International market rates are expected to see a rise in oil prices. Local markets expected to up the petrol and diesel prices by five percent. OGRA has forwarded a summary of the recommended hike in the prices to the petroleum ministry for approval.

According to reports, petrol prices will see a rise of 5.02 rupees per litre, whereas diesel prices are expected to rise by 3.55 rupees.

Currently, the government existing tax rates for petrol stands at 21.5%, 27.5% on diesel and 17% on kerosene oil respectively.

In view of the import prices reported by the Pakistan State Oil (PSO), the Oil and Gas Regulatory Authority (OGRA) has worked out an increase of Rs 5.02 per litre in the prices of HSD and Rs 3.22 in motor gasoline (petrol).

In a summary sent to the government, Ogra maintained that the adjustment in prices of petroleum products was required to pass on the impact of hike in international oil prices and the rupee price against the US dollar during April.

Besides petroleum prices, an increase has also been recommended in the levy on petroleum products.

According to OGRA on the basis of existing tax rates and imported cost of PSO, the calculated new price of petrol will stand at 89 rupees and diesel at Rs 101.47 per litre instead of existing rate of Rs 96.45. This is the highest HSD rate since October 2014.