ISLAMABAD: The prices of petroleum products, including high-speed diesel (HSD), petrol, and kerosene, are expected to increase by up to Rs6 per litre starting Wednesday, owing to a surge in international oil prices.
Sources indicate that petrol prices may rise by Rs5-6 per litre, while kerosene and diesel prices are likely to increase by Rs3 and Rs2 per litre, respectively. The exact adjustment will be finalized by January 15.
The upward trend follows a rebound in global oil markets, fueled by geopolitical tensions after US President-elect Donald Trump’s threats of stringent sanctions on Russian oil exports. This has caused Brent crude prices to increase by $1-2 per barrel.
Recent calculations suggest a price hike of Rs5.50-6.50 per litre for petrol, Rs2-2.50 for HSD, and Rs4 for kerosene. Import premiums and exchange rates have remained stable, but ex-refinery costs for kerosene have edged higher.
An official from the Oil and Gas Regulatory Authority (OGRA) noted that the inland freight equalisation margin (IFEM) could mitigate some of the increase in diesel prices to maintain uniform rates nationwide.
Currently, ex-depot prices for petrol and diesel are Rs252.66 and Rs258.34 per litre, while kerosene is priced at Rs162.95. The government had previously raised petrol and diesel prices by Rs0.56 and Rs2.96 per litre on December 31.
Petrol, widely used in private vehicles, motorbikes, and rickshaws, significantly impacts the middle and lower-middle classes. Diesel, essential for heavy transport, agriculture, and railways, often drives inflation by increasing the cost of goods and services.
Taxes on petrol and diesel include Rs60 per litre as a petroleum development levy and Rs16 per litre as customs duty, in addition to Rs17 per litre distribution margins charged by oil companies and dealers.
The anticipated price hike is expected to exacerbate the financial burden on consumers already struggling with rising inflation.
Story by Khaleeq Kiani
