Petrol prices likely to increase again this week

The government is expected to increase petrol prices by around Rs4.75 per litre in the upcoming fuel price review, while the price of high-speed diesel is likely to remain almost the same if no new petroleum levy is introduced.

According to recent estimates from the oil industry, petrol prices may go up in the next pricing cycle, whereas diesel may see only a very small change unless there are any last-minute adjustments in the exchange rate.

The ex-refinery price of petrol is expected to rise from Rs270.03 to Rs274.77 per litre, mainly due to an increase in international oil prices. During the review period, the global Free on Board price of petrol increased from $139.03 to $143.01 per barrel, which is the main reason behind the expected hike.

Although there was a slight reduction in premiums and other costs, it was not enough to balance the overall increase. The removal of a previous adjustment by Pakistan State Oil of Rs1.41 per litre also contributed to the rise in petrol prices.

On the other hand, high-speed diesel is expected to increase only slightly by about Rs0.20 per litre, going from Rs334.74 to Rs334.93 per litre. Even though the international price of diesel rose significantly from $160.41 to $172.99 per barrel, the impact was reduced due to a major cut in customs duty and other related costs.

Officials said that customs duty alone dropped by more than Rs20 per litre, which helped keep diesel prices mostly stable despite the increase in global prices.

The exchange rate remained almost steady at around Rs278.9 per US dollar, so it did not have much effect on fuel prices during this period.

Experts believe that petrol users will feel the impact of rising international prices, while diesel consumers may get some relief due to government measures. However, the final prices will depend on the government’s decision regarding taxes, levies, and any last-minute changes before the official announcement.