As a result of currency devaluation and the increasing global oil prices, it is anticipated that petroleum product costs will once again experience an upward trend later this week.
According to a media report that references tax rates and import parity prices, the price of petrol and high-speed diesel (HSD) may see an increase of approximately Rs. 10-14 and Rs. 14-16 per liter, respectively, on September 15. Furthermore, kerosene prices are also expected to go up by Rs. 10.
In the initial ten days of the current fortnight, the rupee underwent a depreciation of Rs. 4.5 against the dollar, shifting from Rs. 299 to Rs. 304, before subsequently dropping below the Rs. 300 mark. Nevertheless, despite this exchange rate fluctuation, benchmark international Brent prices surged to over $92 per barrel on Wednesday, up from the initial $88 recorded in the first week of September. This increase effectively offset any advantages gained from the altered exchange rate.
Furthermore, the government is set to transfer the 88 paisas per liter increment in selling margins for petroleum dealers and marketing corporations, as approved by the cabinet’s Economic Coordination Committee (ECC) the previous week, directly to consumers.
Sources indicate that the import parity price for petrol, diesel, and kerosene has surged by Rs. 13, Rs. 14, and Rs. 10 per liter, respectively, since September 1.
Alternatively, in line with Pakistan State Oil (PSO) product imports, the anticipated sale prices for the aforementioned petroleum products are expected to climb by Rs. 13, Rs. 16, and more than Rs. 10 per liter, respectively. Additionally, jet fuel is now priced Rs. 10 per liter higher.
Consequently, it is anticipated that petrol and diesel prices will surpass Rs. 320 and Rs. 325 per liter, respectively, while the price of kerosene is poised to exceed Rs. 240 per liter.
This impending increase in fuel prices is expected to lead to higher inflation across various industries in Pakistan.