Consumers in Pakistan may soon have to deal with a significant increase in fuel prices. Estimates suggest that the cost of high-speed diesel (HSD) could go up by as much as Rs10.25 per litre starting from October 16, 2024.
Pakistan State Oil (PSO) is currently preparing a document to present to the Oil and Gas Regulatory Authority (OGRA) by October 15. Initial calculations indicate that the prices of petrol, kerosene oil, and light diesel oil (LDO) could rise by Rs3.95, Rs7.85, and Rs8.33 per litre, respectively.
OGRA will review these proposed price adjustments and then pass the document to the government for final approval. Once approved, the Finance Ministry will officially announce the new prices.
Additionally, OGRA has suggested an increase of Rs2.75 per litre to enhance the profits of oil companies and petrol pumps. This would raise the profit margins for oil companies to Rs9.22 per litre and for petrol dealers to Rs10.04 per litre.
If these changes are implemented, petrol prices could rise from Rs247.03 per litre to Rs250.98 per litre, while HSD could go from Rs246.29 to Rs256.54 per litre. Kerosene oil prices could increase from Rs154.90 to Rs162.75 per litre, and LDO prices from Rs140.90 to Rs149.23 per litre. These calculations are based on current government taxes and do not include any exchange rate adjustments.
The anticipated increase in fuel prices is expected to have a significant impact on the overall cost of living for Pakistani consumers. It is likely to lead to higher transportation costs and increased prices for various goods and services.
