The outgoing caretaker government is anticipated to raise the prices of petroleum products starting February 1, 2024, for the first half of the upcoming month.
Petrol prices are expected to surge by Rs7.85 per liter, while high-speed diesel (HSD) may see an increase of Rs2.06 per liter. This rise is primarily attributed to heightened tensions in the Middle East due to the Israeli bombardment of Gaza and attacks on Yemen’s Houthis.
Sources informed The News that the international market witnessed a significant reaction to ship attacks, leading to a $6 per barrel increase in motor gasoline (petrol) and a $3.7 increase in diesel prices from January 16, 2024. International companies have reportedly raised their premiums on motor spirit and high-speed diesel.
Consequently, the ex-refinery price of MS petrol in Pakistan has surged from Rs187.74 to Rs269.94 per liter, and the ex-refinery price of HSD has increased from Rs201.79 to Rs282.77 per liter. This surge in international prices translates to a Rs10.60 per liter increase in petrol price and a Rs6.56 per liter increase in diesel (HSD) price.
However, factoring in the exchange rate gains adjustment of Rs2.75 in MS and Rs4.50 in diesel per liter, the expected increase is Rs7.85 per liter for motor gasoline and Rs2.06 for HSD. Kerosene prices, on the other hand, may experience a decrease.
Currently, the government imposes a Rs60 per liter petroleum development levy (PDL) on petrol. Consumers also pay additional charges, including Rs5.69 per liter as IFEM (Internal Freight Equalization Margin), Rs7.87 per liter as OMCs margin, and Rs8.64 per liter as dealers’ margin.
Similarly, the government levies a Rs60 per liter PDL on HSD, with additional charges for consumers, including Rs4.24 per liter as IFEM, Rs7.87 per liter as OMCs margin, and Rs8.64 per liter as dealers’ margin.
In the previous fortnight, the government reduced the petrol price by Rs8 per liter to Rs259.3. However, the diesel rate remained unchanged at Rs276.21 per liter. Additionally, kerosene oil and light diesel oil rates saw a reduction of Rs1.97 and Rs0.92 per liter, respectively, in the latest revision.
