Potential Upcoming Increase in Fuel Prices: Impacted by Currency Depreciation and International Oil Price Fluctuations
ISLAMABAD: The specter of yet another fuel price hike looms, with a significant surge of up to Rs20 per liter anticipated for both petrol and high-speed diesel (HSD) due to the devaluation of the rupee against the US dollar and marginal shifts in global oil prices.
The cost of petrol might escalate by more than Rs10 per liter, while HSD could experience an increase of Rs20 per liter in the first half of September.
According to evaluations by oil sector entities, the price of petrol is projected to climb by approximately Rs10 per liter, from Rs290.45 to Rs300.45 per liter, marking a 3.5% increment. Meanwhile, the cost of HSD is expected to surge by Rs20 per liter, advancing from Rs293.40 to Rs313.40 per liter, signifying a 6.9% hike.
Notably, the prices of less-consumed petroleum products, including KERO and LDO, may also encounter rises of Rs14 per liter and Rs10 per liter, respectively.
Under this anticipated change, KERO’s price would be revised from Rs217.15 to Rs231.15 per liter, while LDO would transition from Rs199.79 to Rs208.80 per liter. During the past 15 days, the average depreciation in the exchange rate stands at Rs9.93.
As of August 29, the Pakistani rupee has experienced a shift from Rs288.25 to Rs298.18 against the US dollar, resulting in an exchange rate loss of Rs10. The price calculations factor in the petroleum levy (PL) of Rs55 per liter on petrol and Rs50 per liter on HSD.
In the recent two assessments, the price of petrol had already risen by Rs37.50 per liter, accompanied by a Rs40 hike in HSD prices.