ISLAMABAD: The federal government may announce a substantial raise in petroleum products prices up to Rs5.59 per litre with effect from March 1, 2022 in the wake of a nine percent surge in oil prices internationally due to the Russia-Ukraine crisis.

Brent crude hit a high of $103 a barrel in early Asia trade, the highest since September 2014.

Energy experts have worked out Rs5.59 per litre increase in the ex-depot rate of petrol.

An increase of Rs4.52 per litre in the price of High Speed Diesel (HSD). The price of kerosene oil (KERO) will likely to increase at Rs4.01 per litre and Light Diesel Oil (LDO) will increase by Rs3.70 per litre. The expected raise in the prices of petroleum products does not include petroleum levy (PL) and General Sales Tax (GST).

Sources said that in case, the government did not pass on the impact of petroleum products prices then it would have to bear around Rs30-billion revenue shortfall.

In case, the government opted to raise the proposed price, the price of petrol would go up from Rs159.86 to Rs165.45 per litre. The price of HSD will also jump from Rs154.15 to Rs158.67 per litre.

The price of KERO will also increase from Rs126.56 to Rs130.57 per litre and LDO will increase to Rs127.67 from Rs123.97 per litre. In case, the government levy PL at the rate of Rs4 per litre than the price of petrol would go up to Rs169.45 per litre, HSD at rate of Rs162.67 per litre, KERO at Rs134.57 per litre, and LDO at rate of Rs131.67 per litre.

Also read: Prices of petroleum products hit all-time high

Copyright Business Recorder, 2022