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The price of petroleum products in Pakistan is expected to rise by Rs2.75 per litre. The Oil and Gas Regulatory Authority (OGRA) has submitted proposals aimed at increasing the profits of oil companies and petrol pumps.
Proposed Profit Margin Increases
Sources indicate that the proposal sent to the government includes 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 is Rs1.40, bringing their margin to Rs10.04 per litre. Currently, the profit margin on diesel and petrol stands at Rs8.64 per litre.
Digitization Costs Contributing to Price Hike
The proposals also 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 proposals.
Impact on Consumers
As the government reviews these proposals, consumers may soon see an increase in their fuel costs. This rise is expected to increase transportation expenses and raise overall living costs across the country.
Recent Price Reductions
Notably, on October 1, the government announced a significant reduction in petrol and diesel prices for the upcoming fortnight. The Finance Ministry announced in a notification that it has reduced the price of petrol by Rs2.70 per litre and the price of high-speed diesel (HSD) by Rs3.40 per litre,
