ISLAMABAD: Despite a recent global decline in oil prices, Pakistan is set to witness a hike in petrol and high-speed diesel (HSD) prices. These fuels are expected to become more expensive by up to 78 paisa per litre starting November 1st.

This price increase comes amid Pakistan imposing one of the highest tax rates on petroleum products in the region. A combined tax, duty, and petroleum levy (PL) of Rs90 per litre is currently levied on these fuels.

Meanwhile, the global average price of petrol has dipped to $76 per barrel, down from $77.5, while HSD is now at $84 per barrel, down from $86.5.

Over the past 15 days, petrol and HSD prices have fallen by approximately $1.5 and $2.5 per barrel, respectively.

According to estimates, the ex-depot price of petrol is projected to increase from Rs247.03 to Rs247.81 per litre, and HSD may rise from Rs251.29 to Rs251.55 per litre. However, the rates of kerosene oil and light diesel oil (LDO) are expected to decrease. Kerosene oil may see a reduction of Rs1.42 per litre, while LDO may decrease by Rs3.32 per litre.

These are; however, preliminary estimates.

The final review of petroleum product prices, scheduled for October 30th, will determine the exact price adjustments.

The ex-refinery price has; however, been calculated ahead of final review, the petrol price is expected to reduce by Rs3.29 per litre and HSD by Rs3.13 per litre.

Premium of petrol is $8.84 per bbl, IFEM on petrol is estimated Rs7.79 per litre and IFEM on HSD is calculated at Rs4.44 per litre.

Copyright Business Recorder, 2024