Govt may increase petrol, diesel prices by Rs10-17per litre

ISLAMABAD: From August 01, 2022, there may be an increase in petrol and diesel prices by Rs10-17 per litre despite the fact that prices of petroleum products and crude oil remained just a little lower. However, the increase has been estimated upwards just because of the fact that the exchange rate has gone crazy.

According to sources, the hike by Rs10 in petrol and Rs16-17 in diesel prices has been estimated without the inclusion of the petroleum levy (PL). And in case the government increases the petroleum levy of Rs5 per litre on petrol, then Mogas price has been projected at Rs15 per litre and diesel at Rs23 per litre. The expected rise in POL prices has also been worked out without the inclusion of an increase in dealers’ margins (DMs) on POL price by Rs2.10 per litre on petrol and Rs2.87 per litre on diesel to Rs7 per litre approved by ECC here on Thursday. And if Rs2.10 in the price of petrol is added, then its price may increase 17.10 per litre and Rs2.87 is added, then diesel price may go up to Rs25.87 per litre.

And if the federal cabinet accords approval to this decision in the next two days, the increase in dealers’ margin will be effective from August 1, 2022. Industrial sources said that so far in the current month, the US dollar value has appreciated by Rs40 and the exchange rate against the US dollar is Rs239.9427 and in the open market is at Rs246.15. However, they said that the exchange rate of today (Friday) will determine the exact prices of petrol and diesel.

Independent experts say that since the crude oil price as of today (Thursday) settled at $99.4 per barrel, the consumers of Pakistan will not be able to reap the dividends, rather they will have to face a hike in POL prices in the wake of increasing exchange rate. However, the government seems more inclined to impose PL on both petrol and diesel by Rs5 per litre each as it is necessary to send a signal to IMF.