The caretaker government is likely to increase the prices of petrol by over Rs 3.50 per liter effective from March 1, 2024.
However, the government may maintain the prices of high speed diesel due to marginal increase in its price.
The increase in the price of high-speed diesel (HSD) has been worked out at Rs 1 per liter and kerosene oil Rs 0.82 per liter.
The price of light diesel oil (LDO) has been estimated to come down by Rs 0.77 per liter.
Due to expected exchange rate adjustment, the price of petrol may go up to Rs 2.94 per liter and diesel Rs 0.49 per liter.
The oil prices revisions are based on higher premium, exchange rate adjustment and current petroleum levy (PL) and general sale tax (GST) rate on petroleum products.
Increase in price of HSD may have inflationary impact as it usually use in transportation sector.
Import premium on petrol is estimated at $ 10.48 per bbl, whereas the premium on HSD has estimated to $6.50 per bbl.
The government is charging Rs 60 per litre PL at both HSD and petrol.
The inland freight equalization margin (IFEM) is Rs 7.52 per liter on petrol and Rs 3.92 per liter on high speed diesel (HSD).
The Oil and Gas Regulatory Authority (Ogra) has yet to work out the recommended fuel prices for the first half of March. The authority will calculate the prices of petroleum prices keeping in view monthly tax targets and estimated fuel consumption and supply cost of Pakistan State Oil (PSO).
Sale of total petroleum products in Pakistan clocked in at 1.38 million tons in January, a decline of 4 percent year-on-year as compared to 1.44 million in the same period of the previous year. The decline comes on the back of lower petrol and diesel sales.
