The Government of Pakistan is expected to hike the price of MS petrol by over Rs. 3, reaching approximately Rs. 278 per liter on February 29, 2024.
The calculations for the upcoming fortnight, starting March 1, consider factors such as high premiums, exchange rates, existing petroleum levy, and GST on petroleum products.
A final decision on the matter will be confirmed tomorrow. It is anticipated that the rates for high-speed diesel (HSD) will remain unchanged in the forthcoming fortnightly review. Given HSD’s widespread use in the transportation sector, any increase in its price could lead to inflation.
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There is a likelihood that the government will raise the price of kerosene oil (kero) by Rs. 0.82 per liter while decreasing the rate of light diesel oil (LDO) by Rs. 0.77 per liter, according to calculations.
In addition to the adjustments mentioned, the government may consider factors such as monthly tax targets, projected fuel consumption, and Pakistan State Oil’s supply costs when determining petroleum prices.
Petroleum prices in Pakistan have remained high during this fiscal year. On January 31, 2024, the cost of petrol was increased by Rs. 13.55 per liter to Rs. 272.89 per liter, while the price of high-speed diesel rose by Rs. 2.75 per liter to Rs. 278.96 per liter.
On February 15, the price of petrol saw another hike, rising by Rs. 2.73 per liter to Rs. 275.62 per liter, while the cost of high-speed diesel increased by Rs. 8.37 per liter to Rs. 287.3 per liter.
