Petrol prices likely to rise by Rs9.70 per litre

September 07, 2023 (MLN): Petrol and High-Speed Diesel (HSD) prices are likely to increase by Rs9.70 and Rs11 per litre respectively due to a significant rise in the ex-refinery price.

The ex-refinery price of petrol and HSD has risen to Rs238.29, and Rs237.61 respectively.

The government will make the final decision about petroleum products on September 15.

To note, the caretaker government on September 01, hiked the petrol and HSD prices by Rs14.91 and Rs18.44 per litre to Rs305.36 and Rs311.84 per litre, respectively.

The ministry attributed this notable surge to the increasing trend of prices of petroleum products in the international market and exchange rate variation. 

The average price of Brent crude oil from September 01 to 07 is $89.704 compared to the average price of $84.54 for the period of August 15 to 31, depicting a surge of 6.11%.

This surge in international prices also indicates a possible rise in domestic prices as it is one of the primary conditions set by the IMF for its Stand-By Arrangement (SBA) that Pakistan needs to pass on the rising international commodity prices to the local consumers.

Analysts believe if the local unit continues to strengthen, then there is a possibility that petrol prices might not go up by the same magnitude

It is pertinent to note that in just the last few days, the local unit has gained a staggering 26 rupee against the greenback, from PKR 331 to PKR 304 in the open market.

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