Govt expected to hike petrol price on Thursday

In the final fortnight of November 2023, the per litre price of petrol in Pakistan is projected to experience an increase of Rs3.18, while high-speed diesel (HSD) is anticipated to undergo a reduction of Rs8.30 per litre on Thursday, November 16.

Sources have indicated that the pricing trajectory of petroleum products is poised for a mixed trend in the latter half of the current month of November 2023.

The price of petrol is forecasted to rise from Rs283.38 per litre to Rs286.56 per litre, marking an uptick of Rs3.18 per litre.

Correspondingly, the cost of HSD/diesel is expected to decrease by Rs8.30 per litre, moving from Rs303.18 per litre to Rs 294.88 per litre.

Additionally, the price of kerosene oil is projected to witness a decline of Rs5.61 per litre, transitioning from Rs211.03 per litre to Rs205.42 per litre.

Furthermore, the price of light diesel oil (LDO) is set to experience a reduction of Rs8.33 per litre, shifting from Rs189.46 per litre to Rs181.13 per litre.

These price adjustments are calculated based on current government taxes and the prevailing US dollar exchange rate, as per informed sources.

According to Profit, the government may uphold the price of petrol due to outstanding forex adjustments, while a reduction of Rs10 per litre is expected for diesel (HSD).

Notably, starting from 1st November 2023, the government has imposed a petroleum levy (PL) of Rs60 per litre on petrol and diesel, alongside receiving an Inland Freight Equalization Margin (IFEM) of Rs7.71 per litre on petrol and Rs0.60 per litre on diesel.

Additionally, the Dealers’ Margin (inclusive of extra margin) on petrol and diesel presently stands at Rs8.64 per litre.

Similarly, the margin for Oil Marketing Companies is fixed at Rs7.87 per litre.

Furthermore, the Distributors’ Margin (inclusive of extra margin) on diesel is currently set at Rs8.12 per litre, and on petrol, it is Rs7.87 per litre, effective from 1st November 2023.

On 1st November, the government maintained the prices of petrol and diesel at Rs283.38 per litre and Rs303.18 per litre, respectively.

Simultaneously, the price of kerosene oil witnessed a reduction of Rs3.82 per litre, establishing the new price at Rs211.03 per litre.

The price of LDO was also decreased by Rs3.40 per litre, fixing the new price of LDO at Rs189.46 per litre for the first half of November 2023.