For those who think that there would be no further strain on their pockets in terms of petrol price revision due on Sept 15, get ready for another jolt to your wallet as the petrol prices are once again set to soar to historic highs, breaking all previous records.
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Economic Coordination Committee’s Decision
This shocking development comes on the heels of a decision made by the Economic Coordination Committee (ECC), which has agreed to raise the profit margins of petroleum dealers and oil marketing corporations (OMCs).
Increased Profit Margins Authorized
The interim government has authorized a substantial increase in the profit margins for fuel and diesel sales. Effective on the 15th of September, the fuel and diesel sale margins will be raised by Rs3.5 per litre. This decision was made during a recent ECC meeting chaired by the Caretaker Finance Minister, Shamshad Akhtar.
Impact on OMCs and Dealers
For OMCs, the profit margins for fuel and diesel will increase by Rs1.87 per litre. In the first phase, on the 15th of September, the sale margin for OMCs will see an increase of Rs0.47 per litre. This is a significant jump that will undoubtedly affect the costs incurred by OMCs, and these costs are likely to be passed on to the consumers.
Profit Margins for Dealers
Petrol and diesel traders are also set to see an increase in their profit margins. A Rs1.64 margin increase has been permitted for these traders, but similar to OMCs, this increase will be phased in. On the 15th of September, consumers can expect an Rs0.41 per litre increase for dealers in the first phase.
Current Petrol and Diesel Prices
Petrol price in Pakistan was increased by Rs. 14.91 per liter by the government of Pakistan on August 31, 2023. After the latest hike, the new petrol price is Rs. 305.36 compared to Rs. 290.45. Meanwhile, the high-speed diesel price (HSD) saw a jump of Rs. 18.44/liter, taking the price to Rs. 311.84 from Rs. 293.40.
Petroleum Development Levy (PDL) Increase
Meanwhile, the Petroleum Development Levy (PDL), was expected to see a rise, like every other commodity and tax, and this is precisely what the caretaker government did. As tweeted by business reporter Shahbaz Rana, the government has increased the tax on petrol to the maximum of Rs60 per liter.
Share Your Thoughts
What do you think about the anticipated hike in petrol prices? Drop your thoughts in the comments section.