Petrol price likely to go up by Rs7.85/litre

ISLAMABAD: The outgoing caretaker regime may, in its last adjustment of the POL prices from February 1, 2024, increase the petrol prices by Rs7.85 per liter and High Speed Diesel (HSD) by Rs2.06 per liter for the first fortnight of next month mainly because of the tension in the Middle East on account of the perpetual attack of Israel on Palestinians at Gaza and attacks on Houthis on merchandise ships.

“International markets sharply react to attacks on ships which is why the price of motor gasoline (petrol) in the international market skyrocketed by 6 dollars per barrel and diesel by 3.7 dollars from January 16, 2024, as the international companies shave increased their premiums on motor spirit and high speed diesel have substantially increased,” the official sources told The News.

“This has led to the ex-refinery price of MS petrol) to Rs269.94 per liter from Rs187.74 per liter in Pakistan and similarly, the ex-refinery price has also gone up to Rs282.77 per liter from Rs201.79 per liter. The impact of the increase of MS in international prices comes out to a hike of Rs10.60 per liter in petrol price and Rs6.56 per liter in diesel (HSD) price.

However, with the exchange rate gains adjustment of Rs2.75 in MS and Rs4.50 in diesel per liter, the motor gasoline price is expected to rise by Rs7.85 per liter and High Speed Diesel (HSD) by Rs2.06. However, kerosene prices may go down.

At present the government is charging Rs60 per liter on petrol as a petroleum development levy (PDL). Consumers are also paying Rs5.69 per liter on petrol as IFEM (Internal Fright Equalization Margin), Rs7.87 per liter as OMCs margin, and Rs8.64 per liter as dealers’ margin.

Likewise, the government charges Rs60 per liter as PDL on HSD. Those who consume HSD in their vehicles also pay Rs4.24 per liter as IFEM, Rs7.87 per liter as OMCs margin, and Rs8.64 per liter as dealers’ margin.