Petrol price may be raised by Rs3.5 per litre

In line with global hike, diesel rate could go up by Rs2.29 per litre

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ISLAMABAD:

Prices of petroleum products are expected to be increased by a maximum of Rs6.20 per litre for the upcoming fortnight beginning January 16 because of a rise in international crude oil prices.

According to market sources, the ex-depot price of petrol is estimated to go up by Rs3.53 per litre while kerosene oil and light diesel oil may become expensive by Rs4.98 and Rs6.20 per litre, respectively. Similarly, the price of high-speed diesel is likely to rise by Rs2.29 per litre.

In the international market, Brent crude oil prices have risen by $1-2 per barrel since January 1. Import premium on petrol and diesel has, however, remained unchanged and the currency exchange rate has also stayed generally stable.

According to sources, the price increase for petrol and high-speed diesel could be offset against the inland freight equalisation margin.

If petroleum prices are raised, the ex-depot petrol and high-speed diesel prices will increase from Rs252.66 to Rs256.19 per litre and from Rs258.34 to Rs262 per litre, respectively.

The price of kerosene oil may be jacked up from Rs162.95 to Rs167.93 per litre and the rate of light diesel oil is likely to rise from Rs149.35 to Rs155.55 per litre.

On December 31, 2024, the government increased petrol and high-speed diesel prices by 56 paisa and Rs2.96 per litre, respectively.

Petrol is mainly used in private transport, small vehicles, rickshaws and two-wheelers and it directly affects the budget of middle and lower-middle classes.

High-speed diesel is primarily consumed by heavy vehicles such as trucks and buses as well as trains. It is also used in tractors, tube wells and threshers, which impacts prices of vegetables and other eatables.

On Friday, Ogra announced adjustments to the imported liquefied natural gas (LNG) prices for January. It increased rates for Sui Southern Gas Company (SSGC) consumers but reduced them for Sui Northern Gas Pipelines Limited (SNGPL) users.

On a month-on-month basis, the price of LNG for SSGC consumers at the transmission stage rose by $0.0468 to $10.5883 per mmbtu. At the distribution stage, the price went up from $12.5456 to $12.6014 per mmbtu.

Conversely, for SNGPL consumers, LNG prices decreased at both stages. The price at the transmission stage dropped by $0.2371 to $11.7288 per mmbtu while at the distribution stage, the price declined from $12.8997 to $12.6667 per mmbtu.