An increase in petrol and diesel prices appears imminent, with reports suggesting a possible hike of Rs2.5 per litre starting December 16.
Local media revealed that the Executive Committee of the Special Investment Facilitation Council (SIFC) convened on Wednesday under Planning Minister Ahsan Iqbal. The meeting focused on enhancing the capacity of local refineries.
To support refinery upgrades, the Inland Freight Equalization Margin (IFEM) for petrol, diesel, kerosene, and light diesel oil is expected to rise by Rs2.5 per litre.
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Currently, petrol is priced at Rs252.10 per litre, while diesel costs Rs258.43 per litre. With the anticipated adjustment, petrol could climb to approximately Rs254.60 per litre, and diesel may reach Rs260 per litre.
The Oil and Gas Regulatory Authority (OGRA) has been directed to evaluate the financial implications of the IFEM increase. The Petroleum Division is also preparing a summary to seek approval from the Economic Coordination Committee (ECC).
One challenge highlighted was the sales tax exemption on petrol and diesel, which has delayed refineries from finalizing essential agreements with OGRA. These steps aim to enhance the production of refined petroleum products, supporting the energy sector in the South Asian nation.
