Govt likely to maintain petroleum prices for next fortnight

By
Our Correspondent

March 14, 2024

An employee updates the fuel prices at a fuel station after the interim government increased the petrol price by Rs 13.55 per litre with effect from February 1, 2024. — Online
An employee updates the fuel prices at a fuel station after the interim government increased the petrol price by Rs 13.55 per litre with effect from February 1, 2024. — Online

  • New govt may avoid increasing fuel prices, says official.
  • Prices may be maintained for next fortnight from March 16.
  • Decision also likely due to international market rates.

ISLAMABAD: After the formation of a new elected government and a fresh federal cabinet taking oath earlier this week, it is likely that the set up in Islamabad will maintain the existing petroleum prices for the next fortnight beginning from March 16, 2024, The News reported on Thursday.

The likelihood of the prices staying the same may also be influenced due to the unchanged cost of fuel in the international market.

However, if the likely variation following the exchange adjustment is considered, the price of petrol is expected to be increased by Rs1.07 per litre to Rs280.82 from the present Rs279.75 per litre.

A senior Energy Ministry official told the publication that the new government may adopt the option to avoid increasing fuel prices from March 16 because the increase in petrol price has been "meagre".

According to The News, the price of diesel for the next fortnight is expected to go down by Re0.82 per litre to Rs286.51 from Rs287.33 per litre, while kerosene price may also tumble by Re0.94 per litre to Rs189.07 from Rs190.01 per litre.

The premium on petrol, on the other hand, seems to be at $12.15 per barrel and on HSD $6.50 per barrel. 

However, the ex-refinery price of petrol is likely to jack up to Rs197.30 from Rs196.23 per litre and diesel may decrease from Rs206.82 to Rs206 per litre.

At present the government is charging Rs60 per litre of petrol as petroleum development levy (PDL). 

Consumers are also paying Rs5.69 per litre on petrol as IFEM (Internal Freight Equalization Margin), Rs7.87 per litre as OMCs margin, and Rs8.64 per litre as dealers margin. Likewise, the government charges Rs60 per litre as PDL on HSD.

Those who consume HSD in their vehicles also pay Rs4.24 per litre as IFEM, Rs7.87 per litre as OMCs margin and Rs8.64 per litre as dealers margin.