Staff Report
ISLAMABAD: The government is set to make fuel price adjustments for the second half of June, with diesel prices expected to increase while petrol prices are anticipated to decrease.
The adjustments, based on factors such as Petroleum Levy and GST, aim to balance economic considerations and provide relief to consumers.
According to reliable sources, high-speed diesel (HSD) prices are likely to witness an increase of up to Rs 3.29 per litre. On the other hand, petrol prices may experience a reduction of Rs 1.87 per litre. These adjustments are subject to government approval and will take effect from 16th June 2023.
The current prices of petrol and HSD are influenced by various factors, including the prevailing rates of Petroleum Levy and GST. Petrol is currently subjected to a PSO exchange adjustment of Rs 3.50 per litre, while HSD faces an adjustment of Rs 0.31 per litre. The government is presently charging an Integrated Foreign Exchange Margin (IFEM) of Rs 4.04 per litre for petrol and Rs 3.79 per litre for HSD.
If the proposed decrease in petrol price is approved, the ex-depot price would be set at Rs 260.13 per litre, as opposed to the current market rate of Rs 262 per litre. Meanwhile, the expected increase in HSD price would result in an ex-depot price of Rs 256.29 per litre, compared to the current market rate of Rs 253 per litre.
Additionally, kerosene prices are expected to undergo a hike of Rs 2.10 per litre, leading to an ex-depot price of Rs 166.17 per litre, while Light Diesel Oil (LDO) might experience an increase of Rs 2.48 per litre, setting the ex-depot price at Rs 150.16 per litre.
The proposed adjustments in fuel prices are part of the government’s ongoing efforts to strike a balance between stabilizing the economy and ensuring affordable fuel prices for citizens. While the decrease in petrol prices may provide some relief to motorists, the increase in diesel prices could pose challenges for industries reliant on diesel fuel, such as transportation, agriculture, and manufacturing.
It is important to note that these adjustments are subject to government approval, and the final decision will consider various factors, including global oil prices, currency exchange rates, and the financial implications for the energy sector.
Stakeholders and consumers are advised to stay informed about the final decision on fuel prices as it will have implications for their budgets and daily lives. The government aims to maintain a delicate equilibrium between economic stability and affordable fuel prices for the benefit of the nation as a whole.
