KARACHI: Amid the rise in global oil prices, there is a possibility of another major increase in the prices of petroleum products in the next fortnightly review.
However, according to industry officials, the recent depreciation of the rupee against the dollar in the interbank market may weaken the price hike.
The Oil and Gas Regulatory Authority (OGRA) is expected to announce new prices of petrol, diesel and other petroleum products on September 15, based on average international crude oil prices and exchange rate fluctuations in the first 15 days of September. Will do on the basis.
In the next fortnight’s review of petroleum prices, petrol prices may rise by Rs 16 per litre, while high-speed diesel (HSD) prices are likely to rise by Rs 13.66 per litre, industry estimates show.
The ex-depot price of petrol for the next fortnight stands at Rs 321.35 per litre, showing an increase of Rs 15.99 against its current price of Rs 305.36 per litre, while the ex-depot price of HSD stands at Rs 311.84 per litre. worked out at Rs 325.50 per liter as against Rs.13.66 per litre.
The prices of kerosene and light diesel oil (LDO) are also expected to increase by Rs 10.02 and Rs 4.45 per liter respectively.
The increase in ex-depot prices is mainly due to depreciation of rupee and increase in international prices of petroleum products.
The oil industry has pegged the ex-depot price of petroleum products for the next fortnight as against an average exchange rate of Rs 299.77 per dollar for the current prices of petroleum products in the country.
However, industrialists expect the exchange rate to depreciate somewhat as the dollar’s depreciation in the interbank market and further declines in the remaining two days before the price announcement may provide some relief to consumers in the prices of petroleum products.
However, he opined that no major relief can be expected for consumers as the global prices of petroleum products have also increased, which will adversely affect local consumers in case of high prices of petroleum products.
“Appreciating rupee will have a positive impact on petroleum prices, but it will not be enough to offset the impact of rising global oil prices,” said an industry official.
The government reviews and adjusts petroleum prices every fortnight based on Ogra’s recommendations. However, the final decision rests with the finance ministry, which sometimes absorbs part of the increase to provide relief to consumers.
But the government has to raise fuel prices as it did under a $3 billion standby agreement with the International Monetary Fund (IMF).