Petrol prices are expected to rise by Rs3 per litre and diesel by Rs2.87 per litre starting December 1 for the next fortnight, due to a modest increase in international prices over the past 12 days on Thursday.
However, officials are expecting a decline in POL prices in the global markets from Thursday or Friday on account of the Israel-Hezbollah ceasefire; hence, no change in the POL prices.
Brent crude settled 2 cents higher at $72.83 a barrel while US West Texas Intermediate crude slipped 5 cents to $68.72.
As per the working based on 12 days of the current fortnight, the surge in the price of petrol by Rs3 per litre has been worked out and it may settle at a new price of Rs251.38 per litre from the existing price of Rs248.38 per litre.
Likewise, the diesel price has also been estimated to increase by Rs2.87 per litre, from Rs255.14 to Rs258.01 per litre.
Nevertheless, the kerosene oil price is projected to decline by Re0.11 per litre to Rs165.49 from the existing Rs165.60 per litre.
The price of LDO (light diesel oil) is likely to tumble by Re0.04 per litre to Rs152.17 from Rs152.21 per litre.
In the previous fortnightly review, the federal government maintained the prices of petrol and high-speed diesel (HSD) based on the price trends in the international market.
Petrol 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.
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