By Business Reporter
ISLAMABAD: Petroleum products in Pakistan are expected to become costlier from October 1, with an increase of up to Rs4.65 per liter proposed. According to industry sources, the Oil and Gas Regulatory Authority (OGRA) is preparing to send a summary to the federal government on Tuesday, recommending price adjustments for key fuels.
As per initial estimates, the price of high-speed diesel is expected to rise by Rs2.48 per liter, while kerosene oil may see the highest hike of Rs4.65 per liter. Similarly, light diesel oil could become costlier by Rs1.76 per liter.
The summary will be reviewed by the Prime Minister and the Ministry of Finance, who will take the final decision after consultation. Officials say the actual prices will depend on global market trends, rupee-dollar parity, and the impact of petroleum levy or other taxes imposed by the government.
Sources added that if the government decides to increase petroleum levy or indirect taxes, prices may rise further. However, if taxes are reduced, petroleum products could also become cheaper.
The upcoming revision of petroleum prices is part of the government’s fortnightly review mechanism aimed at adjusting domestic rates in line with international oil prices.
This expected hike is likely to increase inflationary pressure, as diesel and kerosene are widely used in agriculture, transportation, and households. Economists warn that a further increase in petroleum product prices could directly impact the cost of living and production in the country.
