Oil prices likely to remain unchanged

Currently, an increase of up to Rs3 per litre in petrol price is on cards

ISLAMABAD:

The federal government may maintain current oil prices keeping in view the reduction in global oil prices effective Dec 1.

Sources said that currently, there was an increase of up to Rs3 per litre in petrol price. However, oil industry officials suggested that prices may remain unchanged as a decrease in prices is anticipated in the international market on Thursday and Friday (today).

According to estimates from oil marketing companies (OMCs), the rate of petrol has witnessed an increase of Rs3 per litre, rising from Rs248.38 to Rs251.38 per litre so far.

The price of high speed diesel (HSD) has also seen a hike of Rs2.87 per litre, increasing from Rs255.14 to Rs258.01 per litre due to fluctuation in global oil prices.

Petrol is used in motorcycles and cars, and its demand has increased since the government cut indigenous gas supplies to CNG retail outlets in Punjab several years ago.

CNG stations in Punjab now use imported gas, which is priced at double the cost of indigenous gas. As a result, CNG has become uncompetitive in the province.

HSD is primarily used in the transport and agriculture sectors. Therefore, fluctuations in its price will have a direct inflationary impact on consumers.

Similarly, the price of kerosene oil may decrease by 11 paisas from Rs165.60 to Rs 165.49 per litre, and the price of light diesel oil (LDO) may drop by 4 paisas from Rs152.21 to Rs152.17 per litre.

Kerosene oil is commonly used in remote areas, particularly in the northern parts of the country where LPG is unavailable for cooking purposes. It is also a key resource for the Pakistan Army in these regions due to the cold weather. LDO, on the other hand, is primarily used in industry.