Monday, April 15, 2024

Hike in Petrol & Diesel Prices Expected from Tomorrow

The prices of petrol and high-speed diesel are expected to go up starting tomorrow, February 16, for the next two weeks. This increase comes after an adjustment in the exchange rate, as reported by news sources on Thursday.

Officials have stated that the rise in fuel prices is due to the worrying situation in the Red Sea, where the movement of oil vessels and other ships is being restricted by attacks from the Houthis.

Without the exchange rate adjustment, the price of petrol is predicted to rise by Rs1.97 per liter, from Rs272.89 to Rs274.86 per liter. Similarly, diesel prices could increase by Rs9.20 per liter, going from Rs278.96 to Rs288.16 per liter. Kerosene prices may also go up by Rs1.57 per liter, reaching Rs188.19 per liter from Rs186.62 per liter. The price of Light Diesel Oil (LDO) may also surge by Rs3.73 per liter, reaching Rs170.59 per liter from Rs168.86 per liter.

In the international market, the premium on petrol is calculated at $9.43 per barrel and $6.50 per barrel for high-speed diesel due to ongoing attacks on ships in the Red Sea. Consequently, the ex-refinery price of petrol is expected to rise to Rs191.44 per liter from Rs189.47 per liter. The new ex-refinery price of diesel is estimated to be Rs207.76 per liter, kerosene oil at Rs177.80 per liter, and LDO at Rs164.14 per liter.

Currently, the government imposes a petroleum development levy (PDL) of Rs60 per liter on both petrol and diesel. Additionally, consumers pay Rs5.69 per liter on petrol as IFEM (Internal Freight Equalization Margin), Rs7.87 per liter as OMCs margin, and Rs8.64 per liter as dealers’ margin.

For those using high-speed diesel, there is an additional Rs4.24 per liter charge as IFEM, Rs7.87 per liter as OMCs margin, and Rs8.64 per liter as dealers’ margin.

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