Petrol prices set to sharply rise on September 1

Prepare for a substantial surge in oil prices during the initial two weeks of September 2023. Anticipate significant hikes in various fuel types. For instance, the cost of gasoline could potentially rise by approximately Rs 9.65 per liter, while high-speed diesel might see an increase of about Rs 19.42 per liter. Kerosene oil may also experience a hike of approximately Rs 13.82 per liter, and Light Diesel Oil could increase by around Rs 8.66 per liter.

If these adjustments receive approval, it implies that starting from September 2023, consumers may be facing prices of about Rs 300.10 per liter for petrol, approximately Rs 312.82 for high-speed diesel, roughly Rs 230.97 for kerosene oil, and about Rs 208.79 for Light Diesel Oil.

It’s important to note that these potential price hikes are contingent upon existing taxes and fees. The Pakistan State Oil suggests that exchange rate fluctuations might contribute an additional Rs 2 per liter for petrol and Rs 7 for diesel. Furthermore, there’s a charge known as the Inland Freight Equalization Margin (IFEM), presently at Rs 4.13 for petrol, which could change pending a decision by the Oil and Gas Regulatory Authority (OGRA).

Currently, petrol is priced at around Rs 290.45 per liter, high-speed diesel stands at about Rs 293.40 per liter, kerosene oil is approximately Rs 217.15 per liter, and Light Diesel Oil is around Rs 199.79 per liter.

It’s essential to understand that petrol fuels cars and motorcycles, while high-speed diesel powers larger vehicles like trucks and buses, as well as machinery in industries. Kerosene oil is utilized for cooking and lighting in homes without electricity, and Light Diesel Oil finds application in industrial boilers, furnaces, and specific engines in industries such as textiles and cement production.

It’s worth noting that these potential price increases could place additional financial strain on individuals already grappling with budgetary challenges, potentially contributing to overall inflation. However, it’s crucial to emphasize that these changes are subject to government approval and influenced by global oil prices, currency exchange rates, and their impact on the energy sector.

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