Petrol price rises by Rs36.16 per litre in September, diesel by Rs32.91
PPC’s analysis shows that diesel prices have been increased nine times in September, while petrol prices have been increased eight times and reduced once.
Petroleum product prices have continued to rise since the beginning of September, with the price of petrol increasing by a cumulative Rs36.16 per litre and diesel by Rs32.91 per litre during the month, according to an analysis of figures by PPC.
Petrol in Pakistan has reached Rs375.82 per litre, while the price of diesel has crossed the Rs400 mark and is currently being sold at Rs403.32 per litre.
PPC’s analysis shows that diesel prices have been increased nine times in September, while petrol prices have been increased eight times and reduced once.
The ongoing tensions and renewed war in the Middle East have shaken global markets, with their impact also being felt in Pakistan. However, consumers in Pakistan are also being charged a substantial amount in the form of local taxes and margins on petroleum products.
At present, local taxes and margins amounting to Rs110.46 per litre are imposed on petrol, while Rs106.87 per litre in local taxes and margins are imposed on diesel.
A breakdown of the taxes and margins imposed on petrol and diesel shows that both products carry a petroleum levy of Rs80 per litre, while a climate levy of Rs5 per litre is imposed on both petrol and diesel.
An Oil Marketing Company (OMC) margin of Rs7.87 per litre is currently applicable on both petrol and diesel, while a dealer margin of Rs9.98 per litre is imposed. The government recently increased the dealer margin.
In addition, a freight rate of Rs7.61 per litre is applicable to petrol, while the freight rate on diesel is Rs4.02 per litre.
If the government wants to provide relief to consumers, it can immediately do so by reducing the petroleum levy and climate levy, which together amount to Rs85 per litre.
