ISLAMABAD According to a Tuesday article in The News, the departing caretaker government is anticipated to raise the cost of petroleum products starting on February 1, 2024, for the first two weeks of the following month.
Fuel prices are expected to rise by Rs7.85 per litre and high-speed diesel (HSD) by Rs2.06 per litre, primarily due to Middle East tensions resulting from Israeli attacks on Yemen’s Houthis and Gaza.
According to sources, “international markets react sharply to attacks on ships, which is why the price of diesel increased by $3.7 and motor gasoline (petrol) by $6 per barrel on January 16, 2024, while international companies increased their premiums on motor spirit and high-speed diesel by a significant amount.”
Due to this, the price of MS gasoline at the refinery in Pakistan has increased to Rs269.94 from Rs187.74 per litre, and in the same way, the price at the refinery has increased to Rs282.77 from Rs201.79 per litre.
The increase in MS international prices results in a rise in petrol prices of Rs 10.60 per litre and diesel prices of Rs 6.56 per litre (HSD).
However, the price of motor gasoline is predicted to increase by Rs7.85 per litre and HSD by Rs2.06 due to the exchange rate gains adjustment of Rs2.75 in MS and Rs4.50 in diesel per litre. Prices for kerosene, however, might decrease.
Currently, a petroleum development levy (PDL) of Rs60 per litre is levied by the government on gasoline. In addition, consumers pay dealers’ margin of Rs. 8.64 per litre, OMCs’ margin of Rs. 7.87 per litre, and internal fear equalization margin of Rs. 5.69 per litre for gasoline.
Similar to this, the government levies PDL on HSD at Rs 60 per litre. In addition, those who use HSD in their cars pay Rs4.24 for IFEM, Rs7.87 for OMCs’ margin, and Rs8.64 for dealers’ margin per litre.
The government cut the price of gasoline by Rs8 per litre during the previous two weeks, to Rs259.3. Nonetheless, the price of fuel per litre remained at Rs 276.21.
In the meantime, the price of light diesel and kerosene oil was lowered by Rs1.97.
