ISLAMABAD: Already burdened masses may find a shock in the form of oil price hike as per litre prices of all petroleum products are estimated to be increased by up to Rs 7.67 for the second half of July 2024.
According to industry sources, petrol price is likely to increase by Rs 7.67 per litre, while high-speed diesel (HSD) could see a hike of Rs 3.72 per litre. Additionally, kerosene oil may go up by Rs 2.39 per litre, and light diesel oil (LDO) could be increased by Rs 0.92 per litre.
This price hike is based on factors such as global oil prices, currency exchange rates, and financial considerations for the energy sector. If approved, consumers could pay Rs 273.28 per litre for petrol, Rs 281.17 per litre for HSD, Rs 184.25 per litre for kerosene oil, and Rs 166.65 per litre for LDO during the last fifteen days of the current month of July 2024.
The estimated fuel price reductions are also based on the current tax structure and calculated with estimated $ exchange adjustment and the Inland Freight Equalization Margin (IFEM) on petrol is Rs 7.79 from Rs 6.12 and Rs 3.11 to Rs 4.51on HSD.
Sources also said that oil prices could see further hike in case of additional petroleum levy of Rs 5/litre. And, if the government increase the PL by Rs 5/litre then petrol price will satnd at Rs 278.28/litre after witnessing a hike of Rs 12.67 and HSD will be available at Rs 286.17/litre after a hike of Rs 8.72/litre.
The Oil and Gas Regulatory Authority (OGRA) will submit its working for future oil prices on July 15, after which the finance ministry will consult with the Prime Minister for a final decision.
Currently, petrol is priced at Rs 265.61 per litre, HSD at Rs 277.45 per litre, kerosene oil at Rs 184.25 per litre, and LDO at Rs 166.65 per litre in the open market.
Petrol is mainly used for cars and motorcycles, while HSD powers heavy vehicles like trucks and buses, as well as industrial machinery.
Kerosene oil is essential for cooking and lighting in households without electricity, and LDO is used in industrial boilers, furnaces, and certain engines, particularly in the textiles, cement, and power generation sectors.
If approved, the increase in fuel prices is expected to add additional burden on the already burdened masses and this hike in oil prices will also cause inflation which is already skyrocketing.
