Fuel prices likely to go up by Rs8.50 per litre

Despite a reduction in import bill and a slight improvement in the local currency rate against the greenback, petrol prices are expected to go up for next fortnight in Pakistan. 

The sources attributed the anticipated hike to the ongoing situation in the Middle East, as the uncertainty in the region caused an increase in oil prices in the international market. 

The international market witnessed a surge in petrol and High-Speed Diesel (HSD) by $4 and $4.50 per barrel, respectively.

Sources said the prices of petroleum products are projected to be higher by Rs2.50 to Rs2.80 on petrol while HSD is likely to go up by Rs8 to Rs8.50 per litre.

However, the import premium on petrol plunged by almost 21pc to $10.7 per barrel over the last fortnight compared to the previous $13.5 in the last few weeks of March. 

On the other hand, the HSD price was up in the global market and the import premium paid by the benchmark Pakistan State Oil remained unchanged at $6.50 per barrel.

According to the sources, the HSD rate is estimated to be high by Rs8 to Rs8.50 per litre. 

However, the government of Pakistan increased the price of petrol by Rs9.66 per litre and reduced HSD by Rs3.32 per litre for the fortnight on March 31.

The government has been collecting Rs60 per litre as the petroleum levy to fulfil the commitments it made with the International Monetary Fund to collect Rs869bn as petroleum levy on petroleum products during the ongoing fiscal year.

It has reached a half target after gathering Rs475bn in the first half (July-December) of the fiscal year.