ISLAMABAD: After five straight fortnightly cuts, the petroleum prices have started reverse journey owing mainly to higher international prices following flare up in the Middle East crisis.

Informed official sources said the prices of major petroleum products — petrol and high speed diesel (HSD) — are estimated to go up by around Rs5.50 and Rs13 per litre, respectively, with effect from October 16 for the next fortnight ending October 31.

They said the petrol price had gone up by an average $2.8 per barrel and that of HSD by about $7 per barrel in the last two weeks or so. Depending on final exchange rate calculation and existing tax rates, the prices of both petrol and HSD are projected to increase by Rs5.50 to 13 per litre.

Officials said the average price of petrol had increased in the international market to almost $79 per barrel from about $76 per barrel. HSD also went to about $87.5 per barrel from $80.5 in the last fortnight. During the current fortnight, the import premium on petrol on both petrol and HSD remained generally stable at $8.7 and $5 per barrel, respectively. On the other hand, the exchange rate remained range bound.

The ex-depot petrol price currently stands at Rs247.03 per litre and that of HSD at Rs246.69 per litre. In the retail market, however, both petrol and HSD are sold on the higher side of Rs248 per litre. Petrol is mostly used in private transport, small vehicles, rickshaws and two-wheelers and has a direct bearing on the budget of middle- and lower-middle class.

Published in Dawn, October 10th, 2024