Govt unlikely to increase POL prices for next fortnight

ISLAMABAD: The new government headed by Prime Minister Shehbaz Sharif is likely to maintain the existing POL prices for the next fortnight starting from March 16, 2024, as the international POL prices almost stayed unchanged.

However, if the expected variation after the exchange adjustment is kept in view, the price of Mogas can be increased by Rs1.07 per litre to Rs280.82 from the existing Rs279.75 per litre. “Since the increase in petrol price has been very meager, the new government may adopt the option not to increase POL prices from March 16,” a senior official of the Energy Ministry told The News.

However, the price of diesel may go down by Re0.82 per litre to Rs286.51 from Rs287.33 per litre. The kerosene price may also tumble by Re0.94 per litre to Rs189.07 from Rs190.01 per litre. The premium on petrol seems to be at $12.15 per barrel and on HSD $6.50 per barrel. However, the ex-refinery price of petrol is likely to jack up to Rs197.30 from Rs196.23 per litre and diesel may decrease from Rs206.82 to Rs206 per litre.

At present the government is charging Rs60 per litre of petrol as petroleum development levy (PDL). Consumers are also paying Rs5.69 per litre on petrol as IFEM (Internal Freight Equalization Margin), Rs7.87 per litre as OMCs margin, and Rs8.64 per litre as dealers margin. Likewise, the government charges Rs60 per litre as PDL on HSD. Those who consume HSD in their vehicles also pay Rs4.24 per litre as IFEM, Rs7.87 per litre as OMCs margin and Rs8.64 per litre as dealers margin.