The petroleum products’ prices are likely to rise from October 16, as global oil rates continue to surge. According to industry sources, prices could increase by up to Rs10 per litre.
A preliminary working paper has been prepared by the petroleum industry and shared with the Oil and Gas Regulatory Authority (Ogra).
As per the early estimates, diesel prices are expected to rise by Rs10.25 per litre, while petrol may see an increase of Rs3.95 per litre. Kerosene oil could become more expensive by Rs7.85 per litre, and light diesel is projected to increase by Rs8.33 per litre.
OGRA will review the proposed price changes and forward the working paper to the government for approval. Following the prime minister’s nod, the Finance Ministry will officially announce the revised prices.
However, the government retains the authority to maintain current prices or apply additional levies to offset the hike. The final decision is expected soon.
A day earlier, sources had said that the price of petroleum products in Pakistan was expected to rise by Rs2.75 per litre, as Ogra had prepared proposals aimed at increasing the profits of oil companies and petrol pumps.
Sources indicated that the proposal sent to the government included an increase in the profit margin for oil companies by Rs1.35, raising it to Rs9.22 per litre. For petrol dealers, the proposed increase was Rs1.40, bringing their margin to Rs10.04 per litre.
Currently, the profit margin on diesel and petrol stands at Rs8.64 per litre.
In addition to these profit adjustments, the proposals account for the costs associated with the digitization of petrol pumps. Oil companies have factored in a digitization project cost of 50 paisas per litre, while petrol pump owners have included a cost of 25 paisas per litre in their profit proposal.
