Petrol and Diesel Prices Expected to Increase on Oct 16

Jawad

14 Oct 2024

212

Petrol and Diesel Prices Expected to Increase on Oct 16

After a period of petrol price reductions, Pakistani consumers should brace for a sharp increase in fuel prices, starting from October 16, 2024. Early reports suggest that high-speed diesel (HSD) could see an increase of up to Rs. 10.25 per liter. This hike comes after a series of adjustments aimed at stabilizing fuel prices in recent months.

Price Proposal in Process

Pakistan State Oil (PSO) is preparing a working paper to submit to the Oil and Gas Regulatory Authority (OGRA) by October 15. This paper will outline potential price increases for different fuel types. Initial estimates suggest a rise in petrol by Rs. 3.95 per liter, kerosene oil by Rs. 7.85 per liter, and light diesel oil (LDO) by Rs. 8.33 per liter. OGRA will review the proposal before forwarding it to the government for final approval.

Profit Margin Adjustments

One of the key factors behind the expected increase is OGRA’s proposed Rs. 2.75 per liter hike to boost the profit margins for oil companies and petrol stations. If approved, oil companies' profits could rise to Rs. 9.22 per liter, while petrol dealers would earn Rs. 10.04 per liter. This adjustment is intended to stabilize the supply chain and ensure fair margins for fuel providers.

Potential New Fuel Prices

If these proposed hikes are implemented, petrol prices could rise from Rs. 247.03 to Rs. 250.98 per liter, and HSD could increase from Rs. 246.29 to Rs. 256.54 per liter. Kerosene oil might jump from Rs. 154.90 to Rs. 162.75 per liter, and LDO could reach Rs. 149.23 per liter from its current Rs. 140.90. These figures are based on current tax rates and do not account for potential exchange rate changes.

Impact on Consumers

The anticipated fuel price rise is likely to have a significant impact on the cost of living, with transportation and essential goods becoming more expensive. However, these figures are preliminary, and the final decision will depend on the government’s assessment of the economic impact. The Finance Ministry will announce the new prices after receiving the prime minister's approval.

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