After the last price increase on Oct 1, petrol is now at an all-time high in the country. The next price revision will take place on Oct 16, and things are not looking good for the public. As per a media report, petrol prices are likely to go up by 7 to 10 rupees per litre.
The government of Pakistan revises the petrol prices on a fortnightly basis on the recommendation of the Oil and Gas Regulatory Authority (OGRA). For the past few months, the petrol prices have been on a rising curve. Hike after hike, petroleum rates have broken all records and reached an all-time high.
Current Petrol Prices
After the government increased the petroleum prices, petrol price has become Rs. 127.30, and the diesel price is Rs.122.04. The prices of light diesel and kerosene oil are Rs. 99.51 and Rs. 99.31, respectively.
Factors Behind These Price Hikes
Although petrol prices are on the rise all over the world. Many countries are dealing with increasing demand and tight petroleum supplies. For Pakistan, there are three main factors behind the increasing petrol prices.
- Freight on Board (FOB)
FOB is the price of any commodity (in this case, crude oil) ready for shipping. Currently, the cost of crude oil per barrel has reached $85 and is still increasing. In layman terms, when the imported oil arrives at the port, it currently costs the government Rs. 91 per litre. Taking this oil off the port to the oil refineries makes the price Rs. 100+ per litre.
- Premium
Currently, there is a 2.2% premium on FOB price, taking the price up by almost $6.8 per barrel.
- Dollar Rate
The dollar rate has become a headache for all. The exchange price goes up with every coming day and is currently at Rs. 171.
Keeping all these variables in mind, the petroleum prices in Pakistan will keep increasing in the coming months. Let’s see what happens on the 15th of this month.
