WEBDESK: Fuel prices in Pakistan are expected to increase by up to Rs5 per litre from June 16, according to a preliminary working paper prepared by the relevant authorities ahead of the upcoming fortnightly price review.
Sources say the working paper has suggested a slight rise in petrol prices by Rs1.12 per litre, while the price of high-speed diesel may go up more significantly, by Rs5.27 per litre. An increase of Rs4.13 per litre has also been proposed for kerosene oil.
The final decision will be made by the Ministry of Finance after consultation with Prime Minister Shehbaz Sharif.
The review is being carried out in line with recommendations from the Oil and Gas Regulatory Authority (OGRA), which considers changes in international oil markets and domestic tax adjustments.
Earlier this month, on June 1, the government had increased the price of petrol by Re1 per litre, taking it from Rs252.63 to Rs253.63.
The price of high-speed diesel was left unchanged at Rs254.64 per litre.
In a statement, the Ministry of Finance said the changes were based on movements in the global oil market and currency exchange fluctuations.
The prices are reviewed every two weeks based on OGRA’s input.
While the proposed Rs1.12 hike in petrol is relatively small, the Rs5.27 increase in diesel could have a wider impact on the economy.
Diesel is widely used in transport and agriculture, and a rise in its cost is likely to push up logistics expenses and the prices of goods.
People who rely on public transport and those on daily wages are already struggling with inflation and high utility bills.
A further rise in fuel prices could make daily living even more difficult and increase operating costs for businesses dependent on road transport.
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