Petrol Price Increased by Rs 26 per Liter

Federal government on Friday has announced to increase the price of petrol by Rs 25.58 per liter for the month of July in line with the hike in global crude oil prices. The new prices have taken immediate effect from the 26th of June.

Related: Pakistan to Officially Adapt Euro-5 Standards from August 2020

According to a notification issued by the Finance Division, the price of petrol has been increased from existing Rs 74.52 to Rs 100.10 per liter. The price of diesel has gone up to Rs 101.46 from Rs 80.15 with an increase of Rs 21.31 per liter. The price of kerosene oil has been hiked by Rs 23.50 per liter from current Rs 35.56 to Rs 59.06 per liter. Light diesel oil (LDO) has seen a price revision by Rs 17.84 to go up from Rs 38.14 to Rs 55.98 per liter.

  Old Price (Rs per liter) New Price (Rs per liter) Difference in Rs
Petrol 74.52 100.10 25.58
Diesel 80.15 101.46 21.31
Kerosene Oil 35.56 59.06 23.50
Light Diesel Oil 38.14 55.98 17.84

After the increase, the government will continue charging Rs 30 per liter petroleum levy on petrol and diesel, Rs 6 per liter on kerosene oil and Rs 3 per liter on LDO. Last month the government had reduced prices of all petroleum products except high speed diesel to partially pass on the impact of massive international price reduction to the masses, however due to artificial shortage of fuel, the relief was never fully transferred to the public.

Related: Government to Take Action Against 9 OMCs

The government has already increased the general sales tax (GST) on all petroleum products to a standard rate of 17% across the board to generate additional revenues. Until January last year, the government was charging 0.5% GST on light diesel oil (LDO), 2% on kerosene, 8% on petrol and 13% on HSD. Besides the 17% GST, the government has almost quadrupled the rate of petroleum levy on HSD and petrol to Rs 30 per liter from Rs 8 per liter in January last year.

 

3 thoughts on “Petrol Price Increased by Rs 26 per Liter”

  1. The hike in Petrol etc.,can be calibrated and differentiated by the IRP.In COVID times – the IRP (Islamic Republic of Pakistan),can raise resources,from only 5 sources

    Hike in Taxes of fuel and liquor
    Hike Rates of Power 
    Hike in Import Duty on Edible Oil
    Cutting govtt staff costs 
    Cutting Govtt costs

    The Public will not tolerate any other tax hike.dindooohindoo

    Since there is a demand drawdown (id.est.,the absolute demand has reduced),so the post hike rates, might be even more than,the pre-Covid cost,to a retail user

    Had the IRP locked into the Oil futures on BMD/NYMEX/CBOT – it would have been a party for IRP (id,est., not deliverable forwards – as there is no storage capacity in the world on tankers or in bond).BMD is controlled by Mahatir – the ally of IKN.

    People are needlessly abusing IKN (Imran Khan Niazi).This man will FREE the Kashmiris from the yokels of the Kaffir genocide.He is the man – and providence,has got him to that seat

    News anchors crib about the rates of fuel in EU and USA,and link it to the Purchasing Power Parity (PPP).Oil is sold in USD – and so, the downstream oil products have to be compared on USD terms.PPP is irrelevant. THE FACT is that the price of petrol and diesel in IRP,is the lowest in the SAARC,and is also lower, than many nations,in the EU.

    However,if like in IRP,there are local refiners – then also,we have to look at the FOB rates of petrol and diesel,as there is an opportunity cost of export. IRP oil refineries are making a profit at these rates – and the tax on that profit,is going to the IRP. ONE COULD ARGUE that the Oil PSUs can sell at Marginal Cost of refining,plus some Fixed cost recovery (FCR)- so that the burden on the retail, is MINISMISED.

    The ethical reason for the above,is that that IRP oil refiners,are listed on the KSE.So if an Oil PSU makes a profit on the misery of the people of IRP – and then speculators punt on it,and also earn quarterly dividends on it – which 98% of the people of IRP cannot avail of – that would, PROBABLY,be against Islamic business principles.Hence,the Oil PSU has to sell on the basis of Marginal cost,plus some FCR.

    The moral reason,is that an Oil PSU in IRP,in the COVID market,SHOULD not make windfall gains,at the expense of the people of the IRP,based on inventory gains.This requires no ACUMEN or intellectual angulature.

    If the Oil PSU is selling the Oil to the distributors,and there is no clause in the agency or dealership agreement,to return to the IRP,the windfall profit earned – that would be criminal.

    For the news anchors of IRP – take the case of Gold.The price of RAW Gold (prime ingots and bars) all over the world,is the same – net of all taxes.The difference of 2-5%, is due to Air freight,assay cost,FX volatility(not translation) and traders margin.Similarly the price of petrol and diesel,is the SAME ALL over the world – net of taxes AND SUBSIDIES,with a margin of 5-11%,to account for differential freight and profit margin.

    However,instead of hiking the rates en masse,on an ad vaolorem basis – IKN should have done the following :

    Imposed a 1 time,1 year tax,on all private luxury cars,using Diesel (based on deemed fuel usage)
    Imposed a 1 time,1 year tax,on all private cars using,Diesel (based on deemed fuel usage)
    Imposed a 1 time,1 year tax,on all private luxury cars,using Petrol (on an adhoc basis)
    Imposed a 1 time,1 year tax,on all private cars,using Petrol (on an adhoc basis)

    Government vehicles can be exempted,as it is just a transfer pricing mechanism for the state . The Result will be that,the people will stop using the cars,and the 2nd hand market for the resale,will disappear,and new car sales,are in any case,in a slump.

    W.r.t. diesel pumps in farm areas – the price should stay constant,or the IRP can give free power for pumping.The Marginal cost of making diesel and stocking and transporting it to farmers,is far beyond the MARGINAL COST OF FREE POWER,to the farmer.The Marginal Cost of transporting power,is only the T and D loss,PLUS the Marginal Cost of generation.In a case of falling power demand – the high cost power plants will be shut down – and the marginal cost of hydel is ZERO,and that of the other fuels,will be Rs 2-5 per unit

    W.r.t agri transport – there are 2 parts.For the cost of transportation to the farmer – the propreitor has to pay a 1 time tax,based on expected fuel usage.For the transportation from the farmer to the City etc., fuel dumps in those demarcated areas,CAN REDUCE the COST OF DIESEL only – so that the lowered logistics cost,of farm output – will offset the hike in logistics costs,of farm inputs.Farmers in IRP are exploited at the point of sale of produce – and so,it is key that the output logistics costs,are kept,as low as possible.

    Make the Oil PSUs of the IRP ensure,that NO WINDFALL profits are earned,by the PRIVATE SECTOR oil distributors,in the IRP

    If the Oil hike CANNOT BE rolled back – then the INCREMENTAL PROFIT earned by the OIL PSUs,can be passed to the Marginal sections,in terms of free power in some geographies and power loads, a 50% hike in interest rates in small saving schemes and a 1 time bonus to marginal sections on insurance policies 

    Net Result 

    Aam junta will get diesel and petrol,at the old rates
    Farmers will be insulated,from fuel hikes
    Farmer rise in input costs on logistics,can be offset by the IRP,by higher Farm gate prices or free power or cash subsidies
    IRP will save on tax administration,as a 1 time tax will be collected 
    Money saved by Aam junta on diesel,can be spent,in part on rise in food etc

    When all options are exhausted – then the retail prices can be hiked en masse.There are still, many cards in the shoe.

  2. For the people of IRP – The Hindoos have hiked petrol and diesel 22 times in 1 month 

    https://timesofindia.indiatimes.com/business/india-business/diesel-price-at-new-high-as-fuel-prices-hiked-for-22nd-time-in-just-over-3-weeks/articleshow/76683014.cms
    https://www.bloombergquint.com/economy-finance/diesel-price-hits-record-high-after-rates-hiked-for-15th-day-in-a-row-petrol-up-35-paise

    The Price of petrol in Pakistan is Rs 46 in INR terms.This is proof that Hindoos cannot run a nation.Even with 130 crore morons – the Indian state cannot reduce the petrol recovery,from the Indians.And Pakistan,with 15% of the population,is around 58% of the Indian Petrol prices !

    Which is why I say,that the True Ram Rajya,was in the time of,the Mughals and Aurangzeb.They know how to administer slaves and knaves.That was paradise.In the times of Aurangzeb, jannat came to India,as under :

    No Sati
    No Dalit pogroms
    No Devdasis
    No Hunger for the citizens
    Land and Work for all

    At the end of the Day,the People of Hindoosthan,are waiting for Imran Khan Niazi (IKN), to rescue them from the slavery,servitude and drudgery,of serving the Brahmin/Bania Vermin.dindooohindoo

    What is the difference between the price of Petrol,in Pakistan and India ? It is Rs 36, and it is the price of the impotence,corruption,debauchery and imbeciliy of the Hindoos in general and the Brahmin/Bania duo.

    This is the price being borne by 1.3 billion Indians,and the dumb dodos don’t even know it. The debauched Indian State,will hike taxes on fuel,liquor,edible oils and power.Their strategem has been to make Inians immune and innured to,the prices of essentials – so that,even when prices in the NYMEX etc., fall,the Bania/Brahmins in the GOI – do not reduce Indian rates.They have drugged the Indian knaves and slaves with a cocktail of coke and opium,mixed with cow piss cola.

    The petrol differential,proves the definition,of the Hindoo,as under:

    The wisdom of the “children of Cyrus,Darius and Xerxes”,encapsulates the “transcendence of Human thought”, the “Deuterosis of the Dindoo”, as under:

    A “Persian dictionary”,titled “Lughet-e-Kishwari”,published in Lucknow in 1964,gives the meaning of the word Hindu as “chore [thief], dakoo [dacoit], raahzan [waylayer], and ghulam [slave].

    Which is Y – I say that India has to be ruled by the Mughals – like Aurangzeb,and that is why,Shivaji wrote this letter to Aurangzeb

    http://thirdbattleofpanipatmaratha.blogspot.in/2015/12/shivajis-famous-letter-to-aurangzeb-in.html

    This firm and constant well-wisher Shivaji, after rendering thanks for the grace of God and the favours of the Emperor, – which are clearer than the Sun, -begs you to inform your Majesty that, although this well-wisher was led by his adverse Fate to come away from your august Presence without taking leave, yet he is ever ready to perform, to the fullest extent possible and proper, everything that duty as a servant and gratitude demand of him

    May the Sun on your royalty continue to shine above the horizon of greatness!

    It is time for IKN and the Mongols,to invade India,free Kashmir,and Free the hapless Indians from the misery,of the Brahmin/Bania verminage 

Leave a Reply

Your email address will not be published. Required fields are marked *