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

• Petrol and diesel prices may rise by Rs10-17 per litre.
• Federal cabinet will approve new prices in the next two days.
• Government seems inclined to impose levy on both petrol and diesel.

ISLAMABAD: Petrol and diesel prices may rise by Rs10-17 per litre beginning August 1, 2022, despite the fact that prices for petroleum products and crude oil have remained relatively stable. The increase has been estimated because the exchange rate has gone haywire, according to a report in The News.

According to sources, a hike of Rs10 in petrol and Rs16-17 in diesel prices has been estimated without the inclusion of the petroleum levy (PL). And if the government increases the petroleum levy of Rs5 per litre on petrol, then Mogas prices have 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 prices by Rs2.10 per litre on petrol and Rs2.87 per litre on diesel to Rs7 per litre approved by the ECC here on Thursday. If Rs2.10 is added to the price of petrol, the price may rise to Rs17.10 per litre, and if Rs2.87 is added, the price of diesel may rise 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 it is at Rs246.15. They did, however, state that the exchange rate in effect today (Friday) will determine the exact price of gasoline and diesel

Independent experts say that since the crude oil price as of Thursday settled at $99.4 per barrel, the consumers of Pakistan will not be able to reap the dividends, but rather they will have to face a hike in POL prices in the wake of the 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 the IMF.

Originally published in The News