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Petrol Diesel Price Hikes in Pakistan

Petrol Diesel Price Hikes in Pakistan 16-9

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Petrol Diesel Price Hikes in Pakistan 16-9 In another major price hike of petroleum products on Friday after the caretaker regime took power in August, petrol prices were hiked by Rs 26.02 per liter while high speed diesel (HSD) prices is 17 rupees. 34 per liter.

Petrol Diesel Price Hikes in Pakistan

On Thursday, there were speculations that petrol and HSD prices may increase by Rs 14 and Rs 16 per liter respectively in the next two weeks, while kerosene prices will also be more expensive by around Rs 10 per litre. However, the increase was much larger than expected.

Petrol Diesel Price Hikes in Pakistan 16-9

A statement from the Ministry of Finance said: “Due to the trend of rising oil prices in the international market, the Government has decided to readjust current consumer prices. »

After the price hike, petrol prices touched an all-time high of Rs 331.38 per litre, while HSD is currently priced at Rs 329.18 per litre. The new price takes effect from midnight. On September 1, the interim government allowed an increase in petrol and diesel prices, pushing petrol prices above the historic threshold of Rs 300 per liter for the first time in the country’s history. The new increase will place an additional burden on citizens already grappling with persistent economic challenges, including soaring inflation, depreciation of the rupee against the dollar, and rising utility bills. and escalating prices of basic goods. . Kerosene and light diesel oil (LDO) prices have not been announced. Diesel is widely used in the transportation and agriculture sectors and therefore any increase in its price brings a major inflationary impact. Kerosene is used for cooking in remote areas, especially in the northern regions of the country, where LPG for cooking is not available. Petrol Diesel Price Hikes in Pakistan 16-9The Pakistani Army is also its main user in these areas. Petrol Diesel Price Hikes in Pakistan 16-9

Petrol Diesel Price Hikes in Pakistan

Meanwhile, the international benchmark Brent price rose above $92 a barrel on Wednesday, compared with $88 in the first week of September. Petrol Diesel Price Hikes in Pakistan 16-9

On Thursday, sources said the government is ready to pass on to consumers about 88 paisa per liter as a result of the increase in sales margins of the authorized oil trading and marketing companies. The Economic Coordination Committee (ECC) from the Cabinet approved it last week. Petrol Diesel Price Hikes in Pakistan 16-9

Import par prices of petrol, diesel and kerosene have increased by around Rs 13, Rs 14 and Rs 10 per liter respectively since September 1, but selling prices are expected to increase by Rs 13, Rs 16 and more than Rs 10 per liter. depending on imported products. by the oil nation of Pakistan. Jet fuel is also estimated to be more expensive at Rs 10 per litre. Similarly, sources said, petrol and diesel prices are expected to cross Rs 320 and Rs 325 per liter respectively. The kerosene rate will be higher than Rs240 per litre. Petrol Diesel Price Hikes in Pakistan 16-9

The increase in prices of petroleum products follows an increase in the inflation rate of more than 27.4% in August, which will also have a slow impact on overall domestic prices in the coming days and weeks. Petrol Diesel Price Hikes in Pakistan 16-9

Petrol Diesel Price Hikes in Pakistan

The interim government recently allowed an increase in petrol and diesel prices, pushing petrol prices above the historic threshold of Rs 300 per liter for the first time in the country’s history. This impending increase will create an additional burden on the people as the ex-depot price is expected to increase from the current Rs 305.36 to Rs 321.35 per litre. According to oil industry estimates, the next two weeks of September are expected to see a significant price increase, with petrol prices increasing by Rs 15.99 per litre, high speed diesel (HSD) by 13, Rs 66 per liter and kerosene increased by Rs 13.66 per liter. Rs 8.79 per liter and light diesel (LDO) Rs 4.45 per liter. Petrol Diesel Price Hikes in Pakistan 16-9 These calculations are based on the government’s current taxes on petroleum products, including petroleum levy (PL) at Rs 55 per liter on petrol and Rs 50 per liter on HSD a measure in accordance with the conditions of the International Monetary Fund. (IMF). Petrol Diesel Price Hikes in Pakistan 16-9

Additionally, the caretaker government may consider increasing the tax on petrol to Rs 60 per liter on diesel, fulfilling its commitment to the IMF. The government also collects Rs 60 per liter petrol tax on high-octane blending ingredients (HOBC). In August, the government collected 75 billion rupees from oil consumers through petroleum tax, with the same expected to be collected in September. Diesel is widely used in the transport and agriculture sectors and therefore any further price increase would lead to a major inflationary impact. Petrol Diesel Price Hikes in Pakistan 16-9

Kerosene prices may also increase from Rs 233.52 to Rs 243.54 per litre.

Kerosene is used for cooking in remote areas, especially in the northern regions of the country, where LPG for cooking is not available. The Pakistani Army is also its main user in these areas. Petrol Diesel Price Hikes in Pakistan 16-9

The price of LDO used in industry may increase from Rs 210.13 to Rs 218.92 per litre. The rupee’s depreciation of Rs 4.45 against the dollar also had an impact on oil prices. The government may allow an adjustment in the exchange rate of Pakistan State Oil (PSO) for petrol and HSD by Rs 3 per litre. This will be the next oil price increase in the second half of September as global commodity prices continue to increase. International standard Brent crude oil futures are fluctuating around 92.14 USD/barrel. Saudi Arabia and Russia last week announced they would extend voluntary supply cuts totaling 1.3 million barrels per day until the end of the year. Petrol Diesel Price Hikes in Pakistan 16-9.

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