Islamabad: The price of petrol in Pakistan may witness a surge of PKR 20 per litre in the next two weeks’ review – which is to be held on February 15, the media reported on Tuesday.
This recent uptick in petrol price was based on the calculations of the international price of petrol i.e. free on board (FOB) basis, oil industry sources said.
The Pakistan government had carried out a massive increase of PKR 35 per litre in the last fortnightly review of fuel prices. Currently, the government is charging PKR 50 per litre petroleum levy (PL) whereas general sales tax (GST) has not been imposed yet, The News reported.
The price of petrol may further increase provided the foreign exchange rate was adjusted in the next review, the sources mentioned, The News reported.
They further said that the exchange rate was on the higher side, which would deprive the local consumers of any benefit or reduction in the prices of petroleum products.
The prices of petrol in the international market have decreased, but the steep depreciation of the PKR against the dollar has eroded the gains to detriment of domestic consumers.
The sources also added that the petrol price might go up even further if the government adjusted PKR 20 per litre on account of the exchange rate as well, which would cumulatively take the price by up to PKR 40 per litre, The News reported.
On the other hand, diesel price was not reflecting any increase on FOB sans exchange rate adjustment. The sources said that if the exchange rate was adjusted, diesel prices could go up in the next review.
The government had adjusted PKR per litre on diesel on account of the exchange rate; however, the steep appreciation of the dollar has eaten up the exchange rate adjustment of the last review, The News reported.
–IANS
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