ISLAMABAD: Consumers may face a substantial increase in fuel prices, with estimates suggesting a potential rise of up to Rs10.25 per liter for high-speed diesel (HSD) with effect from October 16, 2024.

Pakistan State Oil (PSO) is currently preparing a working paper to be submitted to the Oil and Gas Regulatory Authority (OGRA) on October 15. Based on preliminary calculations, petrol prices could increase by Rs3.95 per liter, kerosene oil by Rs7.85 per liter, and light diesel oil (LDO) by Rs8.33 per liter.

The OGRA will review these proposed price adjustments and forward the working paper to the government for final approval. Once the prime minister gives the green light, the Finance Ministry will officially announce the revised prices.

Govt reduces petrol price by Rs2.07, HSD’s by Rs3.40 per litre

Contributing to the expected price hike is an estimated Rs2.75 per liter increase proposed by OGRA to boost the profits of oil companies and petrol pumps. The proposed increase in profit margins for oil companies would raise them to Rs9.22 per liter, while petrol dealers would see their margins increase to Rs10.04 per liter.

If implemented, the new prices could push petrol up from Rs247.03 per liter to Rs250.98 per liter, HSD from Rs246.29 to Rs256.54 per liter, kerosene oil from Rs154.90 to Rs162.75 per liter, and LDO from Rs140.90 to Rs149.23 per liter. These calculations are based on current government taxes and without any exchange rate adjustments.

The impending fuel price hike is expected to have a significant impact on the overall cost of living for Pakistani consumers, as it will likely lead to increases in transportation costs and the prices of various goods and services.

Copyright Business Recorder, 2024