Pakistan is expected to see an increase in petrol and diesel prices of Rs. 4 to 11 per liter in the next two weeks. The rise in petrol prices is due to the global oil market where prices have been on the increase, as well as a rise in import premiums. Any improvement in the exchange rate would not make much of a difference.
The price of diesel could go up by Rs. 9 to 11 per liter, while petrol might rise by Rs. 4. However, these changes are heavily dependent on the exchange rate. There is also a possibility of moderate price increases for kerosene oil and light diesel.
It’s important to note that just before the general elections on January 31st, the government had already raised petrol and diesel prices by Rs. 13.55 and Rs. 2.75 per liter respectively, bringing the price of petrol to Rs. 272.89 per liter and diesel to Rs. 278.96 per liter.
Global Market Trends
According to media reports, global prices for petrol and diesel have increased over the past 15 days. Additionally, Pakistan State Oil had to make extra payments for import premiums due to a slight increase in the value of the rupee against the dollar.
In the past two weeks, petrol prices have risen from $88.7 to approximately $89.9 per barrel, while diesel has increased from $98.4 to $101.82 per barrel. The rupee has also seen a slight rise against the dollar, settling at around Rs. 279.7.
The government continues to levy premiums on cargo, maintaining them at $9.7 per barrel for petrol and $6.5 per barrel for diesel.
It’s worth mentioning that the government is already collecting a significant amount in taxes, approximately Rs. 82 per liter, on both petrol and diesel. Despite not imposing sales tax on petroleum products, it has set the Petroleum Development Levy at Rs. 60 per liter for both products. Additionally, there is a customs duty of roughly Rs. 17 to 20 per liter on petrol and diesel.
