The oil industry in Pakistan has proposed an increase in the prices of various petroleum products from November 16, with a summary sent to the Oil and Gas Regulatory Authority (OGRA).
According to industry sources, petrol prices are suggested to rise by Rs2.60 per liter, while high-speed diesel (HSD) may see an increase of Rs6 per liter. The price adjustments are proposed based on the current tax rates, with exchange rate effects reportedly kept zero in these calculations.
The proposed price hikes include a Rs6 increase per liter for light diesel and Rs5 per liter for kerosene. The current petroleum levy stands at Rs60 per liter on petrol and diesel.
Additionally, the ex-refinery rates for petrol and diesel have reportedly climbed by Rs2.58 and Rs6.20, respectively, with the premium per barrel increasing by $1.
The oil price adjustments summary will be submitted to the government on November 15, following which the Ministry of Finance will make a final decision. The ministry, with approval from the prime minister, holds authority to amend prices and adjust taxes keeping in mind its revenue targets.
As of now, the transportation costs for petrol and diesel are estimated at Rs7.89 and Rs4.17 per liter, respectively. If approved, the expected increase could impact consumers amid rising costs across essential commodities.
The IMF has proposed imposing a General Sales Tax (GST) on petroleum products and increasing the Petroleum Development Levy (PDL) from Rs60 to Rs70 per litre.
Current petrol, diesel prices in Pakistan
The latest price hike on October 31 pushed petrol prices up by Rs1.35 per litre, setting the new rate at Rs248.38 per litre. High-speed diesel (HSD) saw a more substantial increase of Rs3.85, now priced at Rs255.14 per litre.
