Petrol prices in Pakistan are set to rise from October 16 due to a surge in global oil rates, with industry sources indicating an increase of up to Rs10 per litre.
The petroleum industry has prepared a preliminary working paper, which has been shared with the Oil and Gas Regulatory Authority (OGRA). According to initial estimates, diesel prices may go up by Rs10.25 per litre, while petrol is expected to increase by Rs3.95 per litre. Kerosene oil could rise by Rs7.85 per litre, and light diesel is projected to become more expensive by Rs8.33 per litre.
Read more: Government Reduces Petrol and Diesel Prices to Ease Public Burden
OGRA will assess the proposed price adjustments and submit the working paper to the government for approval. After receiving the Prime Minister’s consent, the Finance Ministry will officially announce the updated prices. However, the government has the option to maintain current prices or impose additional taxes to mitigate the increase, with a final decision anticipated soon.
Earlier reports suggested that the price of petroleum products in Pakistan might increase by Rs2.75 per litre, with OGRA proposing adjustments aimed at boosting the profits of oil companies and petrol stations. The proposals include raising the profit margin for oil companies by Rs1.35 to Rs9.22 per litre and increasing the margin for petrol dealers by Rs1.40 to Rs10.04 per litre. Currently, the profit margin for both diesel and petrol stands at Rs8.64 per litre.
Additionally, the proposals account for costs related to the digitization of petrol pumps, with oil companies including a cost of 50 paisas per litre and petrol pump owners proposing a cost of 25 paisas per litre in their profit margins.
