Petrol Price Likely to Reach Rs 290 Per Liter Before Eid

News Desk 

Islamabad: Ahead of Eid-ul-Fitr on Sunday (March 31), petrol prices are estimated to rise by around Rs 10-11 per liter for the next 15 days, mainly due to import premiums and higher global prices, while the price of high-speed diesel is expected to decrease by Rs 2 per liter.

According to a report in the Dawn newspaper, 15 days ago, the government decided not to change the price of petrol for the next 15 days. The current price of petrol is around Rs 280 per liter, and after the expected increase, its price will be Rs 290 per liter.

Informed sources said that due to the global political situation, the import price of petrol has increased by about $4 per barrel, and the premium on its import has reached $13.5 per barrel from $12.15 per barrel, resulting in an estimated increase in the final retail price of petrol by 10 to 11 rupees per liter.

On the other hand, the price of diesel in the global market has decreased, and the import premium paid by Pakistan State Oil (PSO) has remained at $6.50 per barrel. As a result, the price of high-speed diesel is estimated to decrease by Rs 1.30 to Rs 2.50 per liter.

Regarding price calculations, officials mentioned that during the last two weeks, the price of petrol increased by about $4 per barrel to $94.5, while the price of diesel decreased by about 60 cents to $98.4 per barrel.

Fifteen days ago, the government had decided to maintain the price of petrol at Rs 279.75 per liter for the next 15 days and reduce the price of diesel by Rs 1.77 to Rs 285.56 per liter.

The government is currently charging a development levy of Rs 60 per liter on both petrol and diesel, which is the maximum limit allowed under the law, as per the government’s commitment to the International Monetary Fund (IMF) for this fiscal year. The target set is to collect 869 billion rupees under petroleum levy.

During the first half of the fiscal year (July-December), the government has already collected Rs 475 billion. It expects to collect around Rs 970 billion by the end of the fiscal year, although the revised target is now set at Rs 920 billion by the end of June.

The prices of petroleum products and electricity have been significant drivers of inflation. Petrol, which is primarily used in private transport, small vehicles, rickshaws, and motorcycles, directly impacts the budgets of low and middle-income earners.

Conversely, the price of diesel has a greater impact on inflation as it is used in heavy transport, trains, agricultural engines such as trucks, buses, tractors, tube wells, and threshers, particularly for transporting vegetables and other commodities, leading to increases in food prices.

Petrol and diesel constitute major sources of revenue, with monthly sales ranging from 7 to 8 lakh tonnes, whereas the monthly consumption of kerosene is only 10,000 tonnes.