From April 16, the price of a liter of petrol is expected to go up by Rs10–14.
The News reported on Saturday that the prices of petroleum products are expected to go up by Rs10–14 per liter over the next two weeks. This is bad news for people who are tired of inflation.
Industry sources say that rising oil prices on global markets could lead the government to raise the prices of petroleum goods.
The price rise could go up to Rs14 per litre if the government also takes into account the losses from the exchange rate. This is different from the last review, when the government didn’t pass on the effects of the devaluation of the rupee to the people.
Based on how the country’s oil sector works, the ex-depot price of petrol has reached Rs14.77 per litre for the next review of prices, which will include an exchange rate loss reduction.
The current ex-depot price of petrol is Rs272 per litre. This price could go up to Rs286.77 per litre if the government chooses to pass on the effects of global oil prices and exchange rate losses.
Even if the government doesn’t fix the exchange rate loses, the price of gas will still go up because the price of oil around the world is going up. Based on how much taxes cost now, the price of gasoline is expected to go up.
The government puts a tax of Rs50 per liter on gasoline, but there is no general sales tax.
The price of petrol is likely to go up because Pakistan State Oil (PSO) made a Rs5 per litre exchange loss adjustment. This is because the government didn’t include exchange rate adjustments in the past to keep petrol prices low.
After the rupee lost a lot of value against the dollar in the last two and a half months, when the market-based exchange rate was allowed by the International Monetary Fund (IMF), POL prices would have been on the high side.
The price of diesel is expected to stay the same.
On the other hand, the price of high-speed diesel (HSD) is expected to stay the same in the next review of prices, since the current ex-depot price of HSD is the same as the working for the next fortnightly price of diesel.
Based on the Rs17.50 exchange loss adjustment of PSO, which was also due before the dollar price went up a lot in the last few weeks, the next review of the HSD price is likely to leave it at the same price.
“The price of diesel could go down by Rs15 per litre if the government doesn’t make up for the loss in exchange rate,” said sources.
In the last review of prices, the government was required by the IMF to raise the fuel levy on HSD to Rs50 per litre and not charge GST on it.
Sources say that people who work in the oil industry see a rise in the price of gasoline but no change in the price of HSD. However, it all depends on what the government decides.
They also said that in the current situation, the government has no choice but to raise the price of gasoline because its finances are already tight.
Also, the government is trying hard to get the IMF program back on track in order to build up the forex reserves.