Another fuel price hike on the cards
A worker holds a nozzle to pump petrol into a vehicle at a fuel station. PHOTO: REUTERS
The government is likely to drop another petrol bomb on the masses on Feb 16 (Thursday) after it already jacked up the prices by Rs35 per litre on Jan 29, two days ahead of schedule.
The masses should get ready to bear a heavy jolt as the prices of petroleum products will be increased by up to 12.5 per cent for the second half of ongoing Feb 2023.
According to sources, the ex-depot per litre price of petrol is calculated to go up by Rs32.07 (12 per cent), high speed diesel (HSD) might witness a rise of Rs32.84 per litre (12.5 per cent), kerosene oil is estimated to be hiked by Rs28.05 per litre and light diesel oil (LDO) might see a hike of Rs9.90 per litre.
“Likely, the new prices are based on current government taxes and estimated PSO incidentals,” the sources said.
The estimated dollar/rupee adjustment applies Rs15 per litre for both products (petrol and HSD) while it is assumed that the petroleum levy (PL) on HSD will rise to Rs50 per litre, they added.
At present, petrol is available at Rs249.80 per litre, HSD at Rs295 per litre, kerosene oil at Rs189.83 per litre and LDO Rs187 per litre.
However, the sources said that if the estimated said hike is approved, the new price of petrol will stand at Rs281.87 per litre, HSD Rs295.64 per litre, kerosene oil Rs217.88 per litre and LDO Rs196.90 per litre during the second half of Feb 2023.
It is also learnt from the sources that ex-refinery price for the second half of February 2023 of petroleum products is calculated to go up by 21.4%.
They said that ex-refinery price of petrol is calculated to go up by 21.4 per cent from Rs177.40 per litre to Rs 215 per litre, HSD price from Rs221.36 per litre to Rs240 per litre (up 8.8 per cent), kerosene oil from Rs182.13 per litre to Rs210.18 per litre (up 15.4 per cent) and ex-refinery price of LDO is also estimated to go up from Rs153.99 per litre to Rs163.89 per litre (up 6.4 per cent).
The already burdened common man will bear an additional heavy jolt in the form of colossal hike in the prices of petroleum products during the second half of February 2023 if the government approves the proposed hike for the future oil prices.
The HSD is widely used in transport and agriculture sectors. Therefore, any increase in its price will be a blow to consumers in the form of rising inflation.
Petrol is used by motorbikes and cars and is an alternative to compressed natural gas.
Gas is not already available at CNG stations to feed transport due to its availability issue in the winter season.
Kerosene oil is used in remote areas where liquefied petroleum gas is not available for cooking purpose.
Pakistan Army is a key user of it in northern parts of Pakistan.