Despite decrease in FOB price, petrol prices will remain high
Consumers will see an Rs20/liter decrease in Petrol prices on a free on board (FOB) basis in the upcoming fortnightly rate review, but it is unlikely that prices will drop further because the government may impose additional taxes on petroleum products and make exchange loss adjustments, The News learned on Monday.
In contrast, the next review should see a Re1/liter increase in fuel prices on a FOB basis. The FOB is the price differential between domestic and international petroleum markets. The oil industry, however, does not anticipate a drop in gasoline prices in the upcoming two weeks based on FOB.
According to the sector, the government will likely increase the petroleum levy (PL) on gasoline in the upcoming two weeks while continuing to adjust petroleum prices for currency loss arrears.
Petrol prices are expected to increase by Rs20 from Sept 1
Read More : https://t.co/KrDF3o25Rg#PetrolPrice #PetrolDieselPrice #Petrol #ImranKhanArrest #WaqarZakaNextPM pic.twitter.com/269aiREYjx— infosette news (@Infosette1) August 25, 2022
Despite a drop in price on the worldwide market, the oil sector anticipated that a decrease in gasoline prices was improbable. After raising the PL on diesel, they warned that the price would significantly increase over the course of the following two weeks. If the government imposed a sales tax on its sale, which has been suspended for the past six months, its price might also increase further.
Despite decrease in FOB price, petrol prices will remain high
The government has not yet corrected the exchange loss, which was Rs23/litre for gasoline and Rs13/litre for diesel, according to the oil industry. According to them, the average price of gasoline globally during the past two weeks was $103/barrel, diesel was $139/barrel, and crude oil was $97/barrel, with an average exchange rate of roughly Rs217/litre.
They claimed that consumers were unlikely to gain from the price drop on the global market, notably for gasoline, and that the price of diesel could significantly climb in the upcoming biweekly review.
In addition to other fees like dealers’ and wholesalers’ margins, the government intends to charge Rs10.5 percent GST and Rs30/litre PL. The government anticipates receiving Rs31 billion in GST and Rs60 billion in PL per month. Currently, the cost of gasoline is Rs233.91 per litre, that of diesel is Rs244.44 per litre, that of kerosene is Rs199.40 per litre, and that of light diesel is Rs191.75 per litre.
