The federal government is considering revising petroleum product prices for the fortnight starting December 1, 2024. This move is linked to rising global oil prices, according to Oil Marketing Companies (OMCs).
Petrol prices may increase by Rs3.00 per litre, rising from Rs248.38 to Rs251.38 per litre. High-speed diesel (HSD) prices could also climb by Rs2.87 per litre, moving from Rs255.14 to Rs258.01 per litre.
Slight Decrease for Kerosene and Light Diesel Oil
In contrast, the prices of kerosene oil (SKO) and light diesel oil (LDO) are expected to drop slightly. Kerosene may decrease by 11 paisa per litre, going from Rs165.60 to Rs165.49 per litre. Similarly, LDO prices may decline by 4 paisa per litre, shifting from Rs152.21 to Rs152.17 per litre.
Factors Behind the Price Adjustments
The price estimates include a projected increase in the Inland Freight Equalization Margin (IFEM), adding Rs7.50 per litre for petrol and Rs4.15 per litre for HSD. Additionally, the calculations factor in a premium of $9.80 per barrel on petrol.
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In the previous review, the government absorbed the rise in IFEM to alleviate inflationary pressures on the public. This measure aimed to keep fuel costs stable despite rising global prices.
Final Decision Expected Soon
The Oil and Gas Regulatory Authority (OGRA) will present its recommendation to the government, with a final decision on the new petroleum prices expected on November 30, 2024. The new rates will take effect on December 1.
Implications for the Public
A potential increase in petrol and diesel prices could add to financial challenges for consumers already grappling with inflation. However, the slight decrease in kerosene and LDO prices may provide minor relief for sectors reliant on these fuels.
The government continues to balance global market pressures with domestic economic concerns, striving to mitigate the impact of fluctuating oil prices on the general population.
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