Steep rise likely in diesel, petrol prices

The prices of high-speed diesel (HSD) and petrol for March are likely to increase by almost Rs7 and Rs4 per litre on Wednesday — the highest since October 2014 due to increased rates in the international market.

Interestingly, next month’s prices have been worked out on the basis of higher-than-notified tax rates on the orders of the Ministry of Finance to enable the government to announce a relatively lower rate for political objectives.

In an order, the finance ministry has ordered calculation of prices on the basis of 31 per cent GST on high speed diesel (HSD) and 17pc on all the other products. This is despite the fact that notified-GST rate on HSD at present is 25.5pc, 7.5pc on kerosene and light diesel oil (LDO) and 17pc on petrol.

Published in Dawn, 28th February, 2018