On February 16, the price of gasoline and fuel may rise by Rs32 per litre.

ISLAMABAD: The A News said that on February 16 (tomorrow), due to the exchange rate of the US dollar, the cost of petroleum items may rise by above Rs32/litre.

The closing price for petroleum, oil, and lubricants was Rs236.40 per dollar, while the current price for the next two weeks is Rs271.82. However, free-on-board Platt prices decreased relative to the previous two weeks.

According to government and industry sources, the price of Mogas would likely increase by 12.8% per litre, or Rs32.07, to Rs281.87 per litre from Rs249.8 per litre.

Similarly, fuel prices might increase by 12.5%, or Rs32.84 per litre, to Rs295.64 from Rs262.8 earlier.

The price of kerosene oil was predicted to climb by 14.8%, or Rs28.05, to Rs217.88 per litre, while the price of light diesel oil (LDO) might increase by 5.3%, or Rs9.90, to Rs196.90 per litre from Rs187 per litre as per the last review.

On the basis of current government taxes and expected Pakistan State Oil (PSO) incidentals, the prices shown above have been approximated. The government may modify the exchange rate to more than Rs251 with an increase of Rs15 per litre for both Mogas and diesel products. The fuel tax on diesel, now Rs40, may rise by Rs10 to Rs50 beginning on February 16.

By imposing a petroleum tax on petroleum, oil, and lubricants, the government had hoped to generate Rs850 billion in income. However, the deficiency in this category has been assessed at Rs250 billion, and the authorities now intend to generate Rs600 billion.

The government increased the price of gasoline by Rs35 per litre from February 1, 2023 to February 15, 2023.

The government is already charging Rs50 per litre for the gasoline charge, but the general sales tax (GST) has not yet been implemented.

The official said that the exchange rate losses incurred by refineries and oil marketing organisations (OMCs) will be eliminated gradually in the future since the government does not want to pass on the whole exchange rate to customers at this time.

The recent rise in petroleum product prices was imposed by the federal government in its assessment on January 29, 2021.

Pakistan is now experiencing a gasoline shortage, with Punjab, the country’s most populated region, suffering the brunt of the problem, which is being attributed to petroleum dealers.

It has also been suggested that hoarders were stockpiling gasoline in preparation of a February 15 price increase (today).