Petrol and Diesel Price Increase: The federal government has announced an increase in the prices of petrol and high-speed diesel (HSD) for the next fortnight, starting from December 1, 2024. The price of petrol has been raised by Rs3.72 per litre, bringing it to Rs252.1 per litre, while the price of HSD has been increased by Rs3.29 per litre, making it Rs258.43 per litre.
Impact on Consumers
Private transport, small vehicles, rickshaws, and two-wheelers mostly use petrol, directly impacting the budget of the middle and lower-middle class. Heavy transport vehicles, trains, and agricultural engines primarily use HSD, which contributes to the prices of vegetables and other essentials.
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Government’s Justification
According to a notification issued by the Finance Division, the Oil and Gas Regulatory Authority (Ogra) has adjusted the consumer prices of petroleum products based on the variation in international oil prices. The notification stated, “Ogra has worked out the consumer prices of petroleum products as per variation in the oil price in the international market. The authorities have decided to slightly revise the prices of petroleum products for the next fortnight starting from December 1, 2024.
Taxation and Revenue
At present, the government is charging about Rs76 per litre tax on both petrol and HSD. Although the general sales tax is zero on all petroleum products, the government is charging a Rs60 per litre petrol development levy on both petrol and HSD that normally impact the masses. The government is also charging about Rs16 per litre customs duty on petrol and HSD, irrespective of their local production or imports.
