Petrol price may go up by Rs15/litre

(Staff Report):-

The government is likely to increase the price of petrol by Rs15 per litre for the second half of April 2023 while the price of high-speed diesel (HSD) may be raised by only 30 paisa.

According to oil industry sources, the ex-depot price of petrol is expected to go up by Rs14.77 per litre, HSD by Rs0.30 per litre, kerosene oil Rs8.96 per litre and light diesel oil (LDO) Rs3.36 per litre for the second fortnight of April.

The estimated hike in prices is based on the current rate of petroleum levy and general sales tax (GST), according to sources.

If the government approves the rate revision, the sale price of petrol will rise to Rs286.77 per litre from the existing Rs272 per litre.

Similarly, the ex-depot price of HSD will reach Rs293.30 per litre while kerosene oil will be available at Rs189.25 per litre. Moreover, the ex-depot price of LDO will increase to Rs286.93 per litre.

According to sources, the current ex-refinery price of petrol is Rs207.16/litre and the next expected refinery price will be Rs221.51/litre, with a variation of Rs14.35.

Similarly, the ex-refinery price of HSD is Rs233.40/litre while the next expected refinery price will be Rs234.26/litre, following a variation of Rs0.86.

Likewise, the ex-refinery price of kerosene oil is Rs169.05/litre while the expected price for the second fortnight of April is Rs178.01/litre, with a rise of Rs8.96.

Furthermore, the current ex-refinery price of LDO is Rs154.30/litre while the next refinery price is expected to be Rs162.10/litre, with an increase of Rs7.80.

Generally, petrol is an alternative to compressed natural gas (CNG) and because of gas shortage, CNG is not available in the market. Due to the closure of CNG stations, the demand for petrol is on the rise.

Punjab has been using liquefied natural gas (LNG) for the past few years in CNG filling stations owing to the gas scarcity.

People of Pakistan are already reeling from soaring inflation and a further increase in prices of petroleum products will trigger another wave of inflation. Transport fares may also go up, leading to a rise in prices of goods across the country.

Petrol is used in motorbikes and cars while diesel is consumed in heavy transport and agriculture sectors. Kerosene oil is used for cooking purposes, especially in remote areas, where liquified petroleum gas (LPG) is not available. LDO is used in industrial units.