The following two weeks’ review, which will take place on February 15, 2023, may result in an Rs20 per litre increase in fuel prices.
According To Oil Industry Sources:
This recent increase in Petrol prices was calculated using the international price of petrol, i.e. free on board (FOB).
The government implemented a large increase of Rs 35 per litre at the most recent weekly review of Fuel pricing.
The government currently charges Rs50 per Litre petroleum levy (PL), while the general sales tax (GST) has not yet been introduced.
Petrol Price
The Petrol Price might rise significantly higher depending on how the foreign currency rate is altered in the future review.
They said that because the exchange rate was high, local buyers would not receive any benefits or price reductions on petroleum products.
Although the worldwide petrol price has decreased, domestic consumers have suffered as a result of the rupee’s severe depreciation against the dollar.
According to the sources:
If the government raises the price of petrol by an additional Rs20 per litre owing to the exchange rate, the fuel price might rise by an additional Rs40 per litre.
However,
There had been no increase in the FOB price of petroleum following exchange rate modifications.
If the exchange rate changes, diesel prices may rise at the next review, according to sources.
The government had cut the price of diesel by Rs14 per litre due to the exchange rate;
Read More: Petrol Price Hike In Pakistan By Mid Feb
However,
The sudden increases in the value of the dollar have negated the exchange rate adjustment from the previous review.
They pointed out:
While diesel prices fell by five to six dollars per barrel on the international market, the rupee’s depreciation prohibited the government from passing these savings on to local users.
On January 29, 2021:
The federal government announced the last price increase for petroleum products.
Following the review:
The prices of petrol, high-speed diesel, kerosene oil, and light-speed diesel were established at Rs 249.80, Rs 262.80, and Rs 189.83 per litre, respectively.
On January 29, 2023:
The government hiked the price of petrol and high-speed diesel by Rs 35 per litre, while kerosene oil and light diesel were raised by Rs 18 per litre.
Pakistan is now suffering from a petrol scarcity, with Punjab, the country’s most populous state, bearing the brunt of the burden.
Petroleum merchants have also been blamed for a scarcity of gasoline in Punjab’s major and minor cities, towns, and villages.
Aside from the fact that the bulk of Oil Marketing Companies (OMCs) import relatively little petrol, sources indicated last week that petroleum merchants were having a field day hoarding gasoline in anticipation of a price increase by mid-February.
