Another big hike in fuel prices on the cards

ISLAMABAD: The interim government may announce, once again, a significant raise in the ex-depot prices of petroleum products up to Rs10 per litre with effect from September 16, 2023, according to estimates.

According to oil sector estimates, a massive increase in the price of petrol by Rs10 per litre, high-speed diesel (HSD) by Rs9 per litre, kerosene oil (KERO) by Rs10 per litre, and light diesel oil (LDO) by Rs8 per litre is expected in the next fortnight of September.

The calculation is based at the current government taxes on petroleum products.

The government is charging petroleum levy (PL) at Rs60 per litre on petrol and Rs50 per litre on HSD to meet one of the conditions of the IMF.

Caretaker govt hikes petrol price by another Rs14.91, takes it to Rs305.36 per litre

The government may allow Pakistan State Oil (PSO) exchange rate adjustment on petrol and HSD at Rs3 per litre.

Under the deal, Pakistan has committed to the IMF that it would increase the maximum PL to Rs60 per litre following the path of increases to reach an average rate over of Rs55 per litre.

Another round of petroleum price hikes for the second half of September 2023 is expected as global commodity prices continue to rally. International benchmark Brent futures hovered around $92.14 a barrel. Saudi Arabia and Russia last week announced that they will extend voluntary supply cuts of a combined 1.3 million barrels per day (bpd) until the end of the year.

Copyright Business Recorder, 2023