The current government is expected to raise the prices of petrol and high-speed diesel (HSD) in the first half of March 2024 due to changes in international prices and import costs.
According to reports in local media, the price of petrol might increase by Rs4 per litre because the costs of these major petroleum products have gone up in the international market.
Compared to diesel, petrol’s price is estimated to rise by Rs3-4 per litre, while diesel may see an increase of Rs1-1.5 per litre, depending on the final exchange rate.
The price of petrol has gone up by around $0.5 per barrel to $90.78, whereas diesel prices have dropped by 8 cents per barrel to $101.05. The import premium paid by PSO for petrol has gone up to $10.45 per barrel this fortnight from $9.47 per barrel, while it remains the same for HSD at $6.5 per barrel.
The interim government has already set the maximum permissible limit of Rs60 per litre for petroleum levy on both petrol and diesel. Their target for petroleum levy collection for FY24 is Rs869 billion, with about Rs475 billion already collected in the first half of the fiscal year.
Authorities aim to collect around Rs970 billion by the end of the year, with a revised target of Rs920 billion by June.
Recently, the prices of petrol and electricity have played a significant role in the high inflation rate, reaching 27.5% in January, as measured by the consumer price index.
