No respite for consumers as fuel prices may spike once again in Pakistan

Informed sources told Dawn News that the prices of both major petroleum products — petrol and high-speed diesel (HSD) — could go up by about Rs10-14 and Rs14-16 per litre, respectively, on Sept 15 for the next fortnight, while kerosene price would also get costlier by about Rs10 per litre, based on the existing tax rates and import parity price.

The rupee initially depreciated by Rs4.5 against the dollar in the first 10 days of current fortnight (from Rs299 to Rs304) before sliding below Rs300, but in the meanwhile, benchmark international Brent prices went beyond $92 per barrel on Wednesday against $88 in the first week of September, thus nullifying whatever little space the exchange rate might have created.

On top of this, the government would also pass on to consumers about 88 paise per litre impact of increase in sale margins for petroleum dealers and marketing companies already approved by the Economic Coordination Committee (ECC) of the cabinet last week.

Sources told Dawn News that the import parity price for petrol, diesel and kerosene had increased by about Rs13, Rs14 and Rs10 per litre, respectively, since Sept 1, but sale prices were estimated to go up by Rs13, Rs16 and over Rs10 per litre as per product imports by Pakistan State Oil. Jet fuels are also estimated to be costlier by Rs10 per litre.

As such, the petrol and diesel prices are estimated to cross Rs320 and Rs325 per litre, respectively. The kerosene rate would be on the higher side of Rs240 per litre.