In a major blow to the consumers, the caretaker government has increased oil prices up to Rs14 per litre for the month of July.
In a statement issued on Saturday night, the Finance Ministry said the government had to pass on full impact of the oil prices to the consumers following depreciation of rupee against dollar.
The Oil and Gas Regulatory Authority (Ogra) had proposed increase in price of petrol by Rs7.54 per litre, high speed diesel (HSD) Rs14 per litre, kerosene oil Rs3.36 per litre and light diesel oil (LDO) Rs5.92 per litre.
After increase in prices of petroleum products, petrol will be available at Rs99.50 per litre, the HSD Rs119.31 per litre, kerosene oil Rs87.70 per litre and the LDO Rs80.91 per litre. The new prices will be effective from today (Sunday).
The HSD is used in transport and agriculture sectors and therefore increase in its prices would directly impact the life of the consumers who would be witnessing hike inflationary rates in the country.
Petrol is also used in vehicles and after ban of local gas at the CNG stations in Punjab, the use of petrol has increased. The average monthly demand of petrol is 625,000 ton, HSD 750,000 tons, kerosene oil 15,000 tons and LDO 2,000 tons per month.
The government is collecting Rs36.62 per litre taxes on the HSD. The consumers were paying Rs8.24 per litre custom duty, Rs20.38 per litre GST and Rs8 petroleum levy on HSD. In addition to it, consumers were paying Rs2.41 per litre margin for oil marketing companies and Rs2.67 per litre dealers’ margins.
The consumers were paying Rs22.44 per litre taxes on petrol. The government was collecting Rs2.59 per litre custom duty, 9.85 per litre GST and Rs10 per litre petroleum levy on petrol.
The government was collecting Rs9.04 per litre GST and Rs6 per litre petroleum levy on kerosene oil. The consumers were paying Rs6.19 per litre GST and Rs3 per litre petroleum levy on the LDO.