Despite the fact that the prices for petroleum products and crude oil have stayed largely unchanged, the price of petrol and diesel may increase by Rs10 to Rs17 per litre as of August 1, 2022. According to the local media, the increase has been anticipated since the currency rate has gone crazy.
Sources claim that without taking into account the petroleum levy, a price increase of Rs. 10 for petrol and Rs. 16–17 for diesel has been projected. Additionally, Mogas prices have been forecasted at Rs15 per litre and diesel at Rs23 per litre if the government hikes the petroleum duty of Rs5 per litre on petrol.
The anticipated increase in POL prices has also been calculated without taking into account the ECC’s Thursday approval of an increase in dealers’ margins (DMs) on POL prices of Rs2.10 per litre for petrol and Rs2.87 per litre for diesel to Rs7 per litre. Petrol’s price may increase by Rs2.10 to Rs17.10 per litre, and diesel’s price may increase by Rs2.87 to Rs25.87 per litre.
If the federal cabinet grants approval to this decision in the next two days, the increase in dealers’ margin will be effective from August 1, 2022. Industrial sources said that so far in the current month, the US dollar value has appreciated by Rs40 and the exchange rate against the US dollar is Rs239.9427 and in the open market it is at Rs246.15. They did, however, state that the exchange rate in effect today (Friday) will determine the exact price of gasoline and diesel.
Experts say that since the crude oil price as of Thursday settled at $99.4 per barrel, the consumers of Pakistan will not be able to reap the dividends, but rather they will have to face a hike in POL prices in the wake of the increasing exchange rate. However, the government seems more inclined to impose PL on both petrol and diesel by Rs5 per litre each as it is necessary to send a signal to the IMF.