Petroleum Prices Set to Increase from October 16 as Global Oil Rates Surge

The prices of petroleum products are expected to rise from October 16, driven by a continuous increase in global oil rates. Industry sources predict that the price hike could reach up to Rs10 per litre.

A preliminary report has been prepared by the petroleum sector and submitted to the Oil and Gas Regulatory Authority (OGRA) for review.

Initial estimates suggest that diesel prices could increase by Rs10.25 per litre, while petrol may see a rise of Rs3.95 per litre. Kerosene oil might become costlier by Rs7.85 per litre, and light diesel could go up by Rs8.33 per litre.

OGRA will assess the proposed adjustments and forward its recommendations to the government for approval. Once the prime minister gives his consent, the Finance Ministry will officially announce the new prices.

However, the government has the option to maintain the current prices or impose additional levies to counter the potential increase. A final decision is expected soon.

Earlier reports indicated that petroleum prices were projected to rise by Rs2.75 per litre as OGRA had put forward proposals to boost the profit margins of oil companies and petrol stations.

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

Currently, the profit margins for both diesel and petrol stand at Rs8.64 per litre.

Additionally, the proposals account for the costs related to the digitization of petrol stations. Oil companies have included a 50 paisa per litre cost for this project, while petrol station owners have factored in a 25 paisa per litre cost in their profit margin proposal.

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