Reasons for the rise in the price of gasoline and diesel were disclosed.

The causes of Pakistan’s most recent spike in the cost of gasoline and diesel have been made public. An official document states that while other levies have remained the same, the price increase is mostly the result of higher freight margins and customs duties.

Because of higher expenses, gas prices are rising.
The petrol freight margin has increased from Rs6.65 to Rs8.69 per litre, an increase of Rs2.04 per litre. Additionally, there is now a Rs1.35 per liter rise in the customs charge on gasoline.

The petroleum levy has been kept at Rs78.02 per litre, while the carbon fee has remained at Rs2.50 per litre notwithstanding these hikes.

According to the paper, the dealer margin for gasoline is still Rs8.64 per liter, while the distribution profit is Rs7.87 per liter.

There are also significant changes in diesel pricing.
The document emphasizes the Rs2.75 per liter increase in the customs charge on diesel. In the meantime, diesel’s exchange rate adjustment has dropped by Rs1.12 per liter.

Diesel’s freight margin has increased from Rs4.10 to Rs6.19 per liter, a gain of Rs2.09. Furthermore, an additional 32 paisa per liter margin has been applied.

Also Read: Next two weeks will see higher prices for gasoline and diesel

On diesel, however, the dealer margin, distribution margin, and carbon levy have all remained at their prior levels.

Why these changes are important
The government’s petroleum product pricing system accounts for margins, levies, freight expenses, and customs duties. Authorities have chosen not to make major changes to petroleum and carbon levies, even though the most recent revisions are concentrated on freight and tariff adjustments.

In a notification released by the Ministry of Finance on Tuesday evening, the government raised the price of gasoline and high-speed diesel for the next two weeks, starting on Wednesday, October 1.

The new price of fuel is Rs268.68 a litre, up Rs4.70 from the previous cost. High-speed diesel now costs Rs276.81 a litre, up Rs4.40 from the previous price.

For the first part of October, the updated prices will be in force.