Petroleum prices likely to go up by Rs13 per litre

Islamabad: A new wave of inflation is expected in the country as a result of the rupee's continued depreciation against the US dollar, with petroleum product prices predicted to increase by more than Rs13 per litre in the upcoming fortnightly review scheduled on August 31.

The exchange rate of the greenback has increased by Rs12.08 from August 16, 2023 as of August 24.

This implies that the only factor driving up the price of petrol and diesel starting September 1 would be the exchange rate. The cost of crude oil and POL products, however, remained largely unchanged on the global market. There are still six days left in the current fortnight, so an additional increase in dollar value is still possible.

The cost of petrol has already climbed by Rs. 37.50 and that of diesel by Rs. 40 per litre over the past two weeks. However, in the most recent scenario, the dollar's open market value was Rs314 while its interbank value exceeded Rs300.

According to industrial sources, the first two weeks of September, the price of diesel and petrol could rise by another 10% as a result of the procurement of oil and POL products at higher US currency values.

Petrol prices will increase by Rs9.95 per litre and diesel prices will rise by Rs13.73 per litre if prices are determined using the dollar value on August 24. However, the price of POL products would increase by double digits if the dollar's appreciation is not restrained and allowed to float freely in the upcoming 7 days.

In addition, the LC confirmation charges, which were 0.5-1% 2-3 years ago, have increased by 10%.