The Government of Pakistan is likely to increase the price of MS petrol by more than Rs. 3 to roughly Rs. 278 per liter on February 29, 2024.
Calculations for the new fortnight starting March 1 are based on high premiums, the exchange rate, the existing petroleum levy, and GST on petroleum items.
The decision will be confirmed tomorrow.
High-speed diesel (HSD) rates will likely remain unchanged for the upcoming fortnightly review. Because HSD is commonly utilized in the transportation sector, an increase in its price could cause inflation.
The government may increase the price of kerosene oil (kero) by Rs. 0.82 per liter. As per calculations, it might decrease the rate of light diesel oil (LDO) by Rs. 0.77 per liter.
Besides the underlined adjustments, the government may determine petroleum prices based on monthly tax targets, expected fuel consumption, and Pakistan State Oil’s supply costs.
Petroleum prices in Pakistan have remained high this fiscal year. On January 31, 2024, the price of petrol was raised by Rs. 13.55 per liter to Rs. 272.89 per liter, while the price of high-speed diesel was increased by Rs. 2.75 per liter to Rs. 278.96 per liter.
On February 15, the price of petrol was raised by Rs. 2.73 per liter to Rs. 275.62 per liter, while the price of high-speed diesel was increased by Rs. 8.37 per liter to Rs. 287.3 per liter.