ISLAMABAD: The federal government is considering a potential increase in petroleum product prices for the fortnight commencing December 1, 2024. This proposed adjustment is attributed to the recent surge in global oil prices.

According to estimates from Oil Marketing Companies (OMCs), the price of petrol could rise by Rs3.00 per litre, from Rs248.38 to Rs251.38 per litre. Similarly, the price of high-speed diesel (HSD) may increase by Rs2.87 per litre, from Rs255.14 to Rs258.01 per litre.

Conversely, the prices of kerosene oil (SKO) and light diesel oil (LDO) are projected to decrease slightly. SKO may decline by 11 paisa per litre, from Rs165.60 to Rs165.49 per litre, while LDO may decrease by 4 paisa per litre, from Rs152.21 to Rs152.17 per litre.

Govt keeps petrol, diesel prices unchanged

These estimates are based on an increase of Rs7.50 per litre for petrol and Rs4.15 per litre for HSD in Inland Freight Equalization Margin (IFEM). Additionally, a premium of $9.80 per barrel on petrol is factored into the calculations.

In a previous review, the government opted to absorb the increase in oil prices in IFEM to mitigate inflationary pressures on the general public.

The final decision on petroleum product prices for the next fortnight is expected to be announced on November 30, 2024, following a recommendation from the Oil and Gas Regulatory Authority (OGRA).

Copyright Business Recorder, 2024