Petrol price likely to be jacked up by Rs3 per litre

HSD expected to drop by Rs8.30 per litre in late November

ISLAMABAD:

The expected adjustments in petroleum product prices during the second half of November present a dynamic scenario. Forecasts suggest a potential increase of Rs3.18 per litre in petrol prices, reaching Rs286.56 per litre from the current Rs283.38. Conversely, high-speed diesel (HSD) is likely to undergo a substantial cut, decreasing by Rs8.30 per litre to Rs294.88 from the existing Rs303.18.

This mixed trend extends to kerosene oil, projected to experience a reduction to Rs205.42 per litre from Rs211.03, reflecting a decrease of Rs5.61 per litre. Similarly, light diesel oil (LDO) is anticipated to witness a notable cut of Rs8.33 per litre, bringing its price down to Rs181.13 per litre from Rs189.46.

The determinants of these prices include current government taxes and adjustments based on the US dollar exchange rate. Notably, sources suggest the possibility of the government maintaining the petrol price due to outstanding forex adjustments, while they anticipate a substantial drop of Rs10 per litre in the HSD rate.

Read also: Petrol, diesel prices unchanged

As of November 1, the government has implemented a petroleum levy of Rs60 per litre on both petrol and diesel. Additionally, the Inland Freight Equalization Margin (IFEM) stands at Rs7.71 per litre for petrol and Rs0.60 per litre for diesel. Dealer margins, including extra margin, are fixed at Rs8.64 per litre for both petrol and diesel, and oil marketing companies maintain a margin of Rs7.87 per litre.

Furthermore, distributor margins, encompassing an extra margin, are established at Rs8.12 per litre for diesel and Rs7.87 per litre for petrol starting November 1.

In the preceding price adjustment on November 1, the government maintained the prices of petrol and diesel at Rs283.38 and Rs303.18 per litre, respectively. Meanwhile, the price of kerosene oil was reduced by Rs3.82 per litre, settling at Rs211.03 per litre, and the price of LDO saw a decrease of Rs3.40 per litre to Rs189.46 per litre for the initial half of November.