The prices of petroleum product will likely see a significant increase of up to Rs20 per liter in the upcoming fortnightly review scheduled for February 15, 2023.
According to reports, the hike in gas prices will be based on international calculations made on a free on board (FOB) basis and may result in an increase in the exchange rate at the next review.
If the government increases the price of petrol by an additional Rs20 per liter due to the exchange rate, the price might rise by Rs40 per liter.
On FOB, no exchange rate adjustment is anticipated, therefore the only way diesel prices could increase in the upcoming review is if the exchange rate is changed.
Also read: Explainer: How much will your gas bill go up as Govt approves 112% increase?
It is reported that the government had implemented a significant increase of Rs35 per liter in the prices of petroleum products in the last fortnightly review, while no general sales tax (GST) has been imposed yet.
Despite a decrease in the international price of petrol, local consumers may not benefit from any reduction in prices due to the high exchange rate. The government had adjusted Rs14 per liter on diesel prices on account of the exchange rate in the previous review, but it is not expected to provide any relief to consumers due to the steep appreciation of the dollar.
As per news flows, several cities, towns, and villages in Punjab are facing a shortage of petrol, with the situation being blamed on petroleum dealers involved in hoarding petrol in anticipation of an expected price increase by mid-February.
