Amid a rise in the international market, fuel prices are likely to increase by up to Rs.8.50 in Pakistan today.
According to media sources, petrol and HSD prices experienced a surge of about $4 and $4.50 per barrel, respectively, in the international market over the last fortnight prior to the recent escalation. Based on preliminary estimations, petrol prices are expected to elevate by Rs2.50 to Rs2.80 per liter, while HSD prices may rise by Rs8 to Rs8.50 per liter in Pakistan.
Notably, the import premium for petrol has plummeted by nearly 21%, down to $10.7 per barrel over the past fortnight from $13.50 in late March. Concurrently, the rupee strengthened by approximately 40 paise against the dollar, reaching Rs278.20. The collective impact is forecasted to result in an increase of approximately Rs2.80 per liter in petrol prices from the current rate of Rs289.41.
Contrarily, HSD prices witnessed an upsurge in the international market, with the import premium, paid by the benchmark Pakistan State Oil, remaining unchanged at $6.50 per barrel. Consequently, HSD rates are expected to climb by Rs8 to Rs8.50 per liter, subject to final exchange rate adjustments in pricing, from the current rate of Rs282.24 per liter at the depot stage.
Officials indicated that petrol prices surged by approximately $4 per barrel to $98.5 last week, while HSD prices increased by $4.50 per barrel to $102.9. Nearly a fortnight ago, the government had hiked petrol prices by Rs9.66 per liter and reduced HSD prices by Rs3.32 per liter for the period ending April 15.
The government has already reached the maximum permissible petroleum levy limit of Rs60 per liter, as mandated by law, for both petrol and HSD. In alignment with commitments to the International Monetary Fund, the government aims to collect Rs869 billion as petroleum levy on petroleum products during the current fiscal year. By the end of December, approximately Rs475 billion had been collected, with expectations to reach Rs970 billion by the fiscal year-end, notwithstanding the revised target of Rs920 billion by the end of June.
Presently, the government imposes approximately Rs82 per liter tax on both petrol and HSD.
