ISLAMABAD: Despite a decrease in the import premium and a slightly better exchange rate, the higher international market is predicted to drive up the prices of gasoline and high-speed diesel by roughly Rs2.50 and Rs8.50 per litre, respectively, on Monday (April 15) for the next two weeks, even though the effects of the Middle East escalation have not yet materialized.
Prior to the most recent increase, informed sources stated that the price of gasoline and HSD had risen by roughly $4 and $4.50 per barrel, respectively, on the global market during the previous two weeks. The ultimate computation is expected to result in an increase of Rs2.50 to Rs2.80 for gasoline and Rs8 to Rs8.50 for HSD per litre.
It’s interesting to note that within the past two weeks, the import premium on gasoline has decreased by nearly 21% to $10.7 per barrel from $13.50 in the final days of March, while the rupee has appreciated by roughly 40 paisa to Rs278.20 versus the dollar. The overall effect is predicted to be a rise in petrol prices of roughly Rs2.80 per litre from the current figure of Rs289.41.
In contrast, the price of HSD increased on the global market, and the benchmark Pakistan State Oil continued to pay the same $6.50 import premium for each barrel of HSD.
Thus, from the current rate of Rs282.24 per litre at the depot stage, the HSD rate was expected to be higher by Rs8 to Rs8.50 per litre, subject to final exchange rate adjustment in pricing.
According to officials, last week’s prices for gasoline and HSD increased by $4.50 and $4.85 per barrel, respectively, for the purpose of pricing calculations.
The government had lowered the price of high speed diesel (HSD) by Rs3.32 per litre and raised the price of gasoline by Rs9.66 per litre for the two weeks ending April 15 almost two weeks prior.
The maximum amount allowed by law, which is Rs60 per liter for both gasoline and HSD, has already been reached by the government.
The government had set a budget objective to collect Rs869 billion as a petroleum levy on petroleum products during the current fiscal year in accordance with the agreements signed with the International Monetary Fund. Despite the revised target of Rs920 billion by the end of June, the government is likely to collect around Rs970 billion by the end of the year, having already collected nearly Rs475 billion in the first half of the fiscal year (July through December).
Currently, the government taxes gasoline and HSD at a rate of roughly Rs82 per litre.
