ISLAMABAD
Amid a backdrop of ongoing economic challenges, including soaring inflation, the government is likely to hike petroleum prices as global commodity prices continue to rally.
The Oil and Gas Regulatory Authority (Ogra) is expected to announce new prices on September 15, based on the average international crude oil prices Meanwhile, the government has not announced any update for expected price revision, and the decision will be finalised in recent meetings.
The Oil and Gas Regulatory Authority (Ogra) is expected to announce new prices for petrol, diesel and other petroleum products on September 15, based on the average international crude oil prices and exchange rate fluctuations in the first 15 days of September.
The petrol price may jump by Rs16 per litre in the next fortnight review of the petroleum prices, while the price of high-speed diesel (HSD) is likely to go up by Rs13.66 per litre, industry estimates showed. The ex-depot price of petrol has been calculated at Rs321.35 per litre for the next fortnight compared to its existing price of Rs305.36 per litre, showing an increase of Rs15.99, while the ex-depot price of HSD has been worked out at Rs325.50 per litre compared to its current price of Rs311.84 per litre, indicating an increase of Rs13.66 per litre.
The prices of kerosene and light diesel oil (LDO) are also expected to rise by Rs10.02 and Rs4.45 per litre respectively. The increase in the ex-depot price has been mainly caused by the rupee depreciation as well as the increase in the international prices of petroleum products.
The oil industry has worked the ex-depot price of petroleum products for the next fortnight at the average exchange rate of Rs304.21 versus one dollar compared to Rs299.77 per dollar average exchange rate for the existing price of petroleum products in the country.
The government reviews and adjusts the petroleum prices every fortnight, based on Ogra’s recommendations. The final decision, however, rests with the finance ministry, which sometimes absorbs part of the increase to provide relief to consumers.
But the government has to raise fuel prices as agreed with the International Monetary Fund (IMF) under $3 billion standby agreement. Last week, the Economic Coordination Committee (ECC) approved increasing the margin of petroleum dealers and oil marketing companies (OMCs).
The caretaker government approved hiking the sale margin of petrol and diesel by Rs3.5 per litre. The decision was taken in the session of the Economic Coordination Committee (ECC) chaired by Caretaker Finance Minister Shamshad Akhtar today, The committee approved hiking the petrol and diesel sale margin for OMCs and dealers.
