Petrol prices likely to inflate by over Rs 7 per liter from February 1

• Petrol prices are likely to increase by Rs 7.85 per litre.
• High-speed diesel is expected to increase by Rs 2.06 per litre.
• Price increase mainly due to tension in the Middle East.

ISLAMABAD: The outgoing caretaker government is expected to increase prices of petroleum products from February 1, 2024, during the first fortnight of next month. News reported on Tuesday.

Petrol prices are likely to rise by Rs 7.85 per liter and High Speed ​​Diesel (HSD) prices by Rs 2.06 per liter, mainly due to tension in the Middle East due to the Israeli bombing of Gaza and the against the Houthis of Yemen. .

“International markets react sharply to attacks on ships, which is why the price of motor gasoline on the international market skyrocketed by 6 dollars per barrel and that of diesel by 3.7 dollars as of January 16, 2024, as international companies increased their motor gasoline premiums. and high-speed diesel have increased substantially,” sources said. News.

This has pushed the ex-refinery price of MS petrol to Rs 269.94 from Rs 187.74 per liter in Pakistan and similarly, the ex-refinery price has also risen to Rs 282.77 per liter from 201.79 rupees.

The impact of MS increase on international prices translates into an increase of Rs 10.60 per liter in the price of petrol and Rs 6.56 per liter in the price of diesel (HSD).

However, adjusting for exchange rate gains of Rs 2.75 in MS and Rs 4.50 in diesel per litre, the price of motor petrol is expected to increase by Rs 7.85 per liter and the HSD at Rs 2.06. However, kerosene prices may drop.

Currently, the government charges Rs 60 per liter of petrol as Petroleum Development Levy (PDL). Consumers also pay Rs 5.69 per liter for petrol as IFEM (internal fear equalization margin), Rs 7.87 per liter as OMC margin and Rs 8.64 per liter as dealers' margin.

Likewise, the government charges Rs 60 per liter as PDL in HSD. Those who consume HSD in their vehicles also pay Rs 4.24 per liter as IFEM, Rs 7.87 per liter as OMC margin and Rs 8.64 per liter as dealers' margin.

In the last fortnight, the government reduced the price of petrol by Rs 8 per liter to Rs 259.3. However, the diesel rate remained at Rs 276.21 per litre.

Meanwhile, there was a reduction in kerosene and light diesel rates of Rs 1.97 and Rs 0.92 per liter in the new revision.