Govt gives another shock to people; increases petrol price by Rs5

12 Jan 2015, Nantong, Jiangsu Province, China --- A Chinese worker holds an oil nozzle at a gas station in Nantong city, east China's Jiangsu province, 12 January 2015. China's crude oil imports rose above 7 million barrels per day for the first time in December, reaching record levels as plunging international prices allowed the world's largest importer to fill strategic and commercial reserves. International crude prices are near six-year lows, revisiting levels last seen in the wake of the global financial crisis. While price controls over transport fuels limit the boost to the Chinese economy, the drop has presented an unusual opportunity for China to increase reserves of crude oil at relatively little cost. China imported 7.15 million bpd in December, bringing its full-year crude imports to a record 308 million tonnes up nearly 10 per cent on the year. Some of that additional demand reflects economic growth --- Image by © Imaginechina/Corbis

Islamabad: The federal government on Wednesday increased the price of petrol by Rs5 per tola, giving another shock to the already inflation-hit who are finding it hard to meet ends.

In a notification released on Wednesday, the Finance Division, however, attributed the price hike to the depreciation of the Pakistani rupee against the US dollar and an increase in the prices registered by Platts Singapore.

With the latest review, the most inflationary high-speed diesel (HSD) prices made a new record, reaching Rs293 per litre. The HSD price adjustment directly impacts consumer prices because of an increase in transport costs.

While keeping the LDO rate unchanged at Rs184.84 per litre, the finance ministry said the per-litre price of petrol had been increased by Rs5 to reach Rs272.

Since January 15, the government has increased the prices of HSD and petrol by Rs65 and Rs62 per litre, respectively.

At present, the GST is zero on all the key products, including petrol, HSD, kerosene and LDO, against the normal GST rate of 17%.

The government, however, is charging about Rs50 per litre petroleum development levy on petrol and high-octane blending component (HOBC) and Rs45 per litre on HSD. It is also charging about Rs25-27 customs duty on a litre of petrol and HSD.