Petrol may reach Rs264.50; diesel Rs276.80 as per preliminary calculations
ISLAMABAD: Petroleum prices are expected to rise by up to Rs2.34 per litre from November 1 for the next fortnight, driven by swings in global oil markets and the impact of recent US sanctions on major Russian producers.
Preliminary calculations for the first 12 days of the pricing cycle suggest petrol may increase by Rs1.48 per litre and high-speed diesel (HSD) by Rs1.38. Kerosene could see a larger jump of Rs2.34 per litre, while light diesel oil (LDO) may edge up by Re0.49.
If current trends hold, consumer prices from November 1 would be around Rs264.50 per litre for petrol, Rs276.80 for HSD, Rs184.05 for kerosene and Rs163.25 for LDO. Final figures will be set on the evening of October 31 after a review of full-fortnight import and exchange-rate data.
In line with fluctuations in the international fuel market, the federal government earlier this month reduced the price of petrol by Rs5.66 per litre for the fortnight.
According to a notification issued by the Finance Division, petrol was priced at Rs263.02 per litre. The price of high-speed diesel (HSD) was also reduced by Rs1.39 to Rs275.41 per litre.
Similarly, the price of kerosene oil was cut by Rs3.26 to Rs181.71 per litre. The government had set the price of light diesel oil at Rs162.76 per litre for the fortnight.
Petrol is mainly used in private transportation, small vehicles, rickshaws, and two-wheelers. Higher fuel prices significantly impact the budgets of the members of the middle and lower-middle classes, who primarily consume petrol for commuting.
On the other hand, a significant portion of the transport sector relies on high-speed diesel.
Its price is considered inflationary since it is predominantly used in heavy goods transport vehicles, trucks, buses, trains, and agricultural machinery such as tractors, tube wells, and threshers. The consumption of high-speed diesel particularly contributes to the increased prices of vegetables and other food items.
