The petroleum products’ prices are likely to rise from October 16, as global oil rates continue to surge. According to industry sources, prices could increase by up to Rs10 per litre.

A preliminary working paper has been prepared by the petroleum industry and shared with the Oil and Gas Regulatory Authority (Ogra).

As per the early estimates, diesel prices are expected to rise by Rs10.25 per litre, while petrol may see an increase of Rs3.95 per litre. Kerosene oil could become more expensive by Rs7.85 per litre, and light diesel is projected to increase by Rs8.33 per litre.

OGRA will review the proposed price changes and forward the working paper to the government for approval. Following the prime minister’s nod, the Finance Ministry will officially announce the revised prices.

However, the government retains the authority to maintain current prices or apply additional levies to offset the hike. The final decision is expected soon.

A day earlier, sources had said that the price of petroleum products in Pakistan was expected to rise by Rs2.75 per litre, as Ogra had prepared proposals aimed at increasing the profits of oil companies and petrol pumps.

Sources indicated that the proposal sent to the government included an increase in the profit margin for oil companies by Rs1.35, raising it to Rs9.22 per litre. For petrol dealers, the proposed increase was Rs1.40, bringing their margin to Rs10.04 per litre.

Currently, the profit margin on diesel and petrol stands at Rs8.64 per litre.

In addition to these profit adjustments, the proposals account for the costs associated with the digitization of petrol pumps. Oil companies have factored in a digitization project cost of 50 paisas per litre, while petrol pump owners have included a cost of 25 paisas per litre in their profit proposal.

The federal government has slashed the price of petrol by Rs2.07 per litre for the next fortnight.

The new prices will be effective from October 1, according to an official notification issued on Monday.

As per the notification, the price of petrol has been decreased by Rs 2.7 per liter, bringing the new price to Rs 247.03 per liter.

High-speed diesel saw a reduction of Rs 3.40 per liter, while light diesel has been lowered by Rs 1.30 per liter. Kerosene oil prices have also been reduced by Rs 3.57 per liter.

This decision aims to ease inflationary pressure on consumers amidst rising fuel costs globally.

Earlier to this it was reported that the petroleum products prices in Pakistan are likely to decrease from October 1 amid a significant drop in the international market.

Petrol, also called mogas, is mainly used in private transportation, small vehicles, rickshaws, and two-wheelers. Higher fuel prices significantly impact the budgets of the members of the middle and lower-middle classes, who primarily consume petrol for commuting. On the other hand, a significant portion of the transport sector relies on high-speed diesel.

Its price is considered inflationary since it is predominantly used in heavy goods transport vehicles, trucks, buses, trains, and agricultural machinery such as tractors, tube wells, and threshers.

The consumption of high-speed diesel particularly contributes to the increased prices of vegetables and other food items.