Possible price hikes for gasoline and diesel starting on February 16

Because of the volatility of oil prices worldwide, there is a chance that the price of gasoline and diesel may go up in the near future.

The price of high-speed diesel is now being considered by the government, who raised the price of gasoline by Rs13.55 per liter on February 1.

With effect from February 16, the government has agreed to raise the cost of high-speed diesel by Rs. 8 per liter. In addition, the price of gasoline may have increased by 80 pesos per liter.

The rise in the cost of high-speed diesel is ascribed to variations in worldwide oil prices.

Diesel prices might go up from the current Rs278.96 per litre to Rs286.97 per litre if the government decides to raise them, subject to premium and currency rate changes.

High-speed diesel, which is widely utilized in the transportation and agricultural industries, might have a negative impact on the general populace because of inflationary pressures brought on by price hikes.

The premium that Pakistan State Oil (PSO) charged for gasoline was lowered to $9.43 per barrel from $9.47 during the previous fifteen days, while the premium for high-speed diesel was increased to $6.50 per barrel.

For gasoline, the expected exchange rate adjustment is 50 paise, and for high-speed diesel, it is Rs 1.70 per liter.

Due to a slight rise of 62 paise per litre, the government may decide to keep the price of furnace oil at Rs186.62 a litre.

However, the price of light diesel oil (LDO) might increase by Rs2.50 per liter to Rs169.62 per liter from the present price of Rs166.86 per liter. Industry is the main use for it.

In isolated places like the nation’s northern regions, where liquefied petroleum gas is unavailable for cooking, furnace oil is utilized.

The computation is based on the current rates of general sales tax and petroleum levy for the fifteen-day period beginning in February.

The suggested gasoline prices for the first half of February have not yet been put into effect by the Oil and Gas Regulatory Authority.

The pricing of petroleum products is determined by the authorities taking into account monthly tax objectives, fuel consumption projections, and PSO fuel supply costs.