The prices of petroleum products are expected to increase by up to Rs6 per litre for the next fortnight of the ongoing month due to rising international oil prices.
The price of petrol in Pakistan may soon rise by as much as Rs. 6 per litre. This anticipated rise is due to escalating global oil prices, particularly following recent US sanctions on Russian oil exports.
According to sources, the price of petrol may increase by Rs. 5–6 per litre, while the prices of diesel and kerosene may increase by Rs. 2-2.50 and Rs. 4 per litre, respectively. The price of petrol will reach Rs. 258.66 if this estimate is accurate. On the other hand, kerosene oil and diesel will now cost Rs. 165.66 and Rs. 260.84 per litre, respectively.
These adjustments are in line with recent developments in the world oil markets, where the US-imposed restrictions on Russian oil shipments caused Brent crude prices to soar by $1–2 a barrel. Over the previous two weeks, ex-refinery costs have increased due to this global change.
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The current prices of fuel, diesel and kerosene are, respectively, Rs. 252.66, Rs. 258.34, and Rs. 161.66 per litre. These changes come after the small increases of Rs. 2.96 for diesel and 56 paisa for petrol that were announced on December 31.
Government-imposed taxes account for a sizable amount of these prices. Petrol and diesel costs Rs. 76 per litre due to taxes alone, which also include a Rs. 16 customs fee and a Rs. 60 petroleum development levy.
Even without the general sales tax (GST) on petroleum goods, oil companies and dealers still contribute Rs. 17 per litre to distribution and sale margins.
Such increases have repercussions in a number of different areas. Because petrol is widely used in private vehicles and two-wheelers, its costs have an impact on household budgets for middle-class and lower-class individuals. Diesel raises the cost of delivering commodities, even daily necessities like vegetables, and is necessary for heavy transportation, agriculture, and railroads.