Numerous factors arose for the surge in the costs of fuel commodities in the nation.
Causes of Rising Fuel Costs in Pakistan
As per the report, the profit margin of petroleum marketing firms and distributors is also a contributing factor to the escalation in the costs of fuel commodities, whereas the devaluation of the currency and the upswing in the worldwide market are equally contributing to the rise in the costs of fuel commodities.
The cost of raw oil in the global market has surged from 88.55 USD per barrel to 93.93 USD. Due to this surge in global market rates, the cost per liter has climbed from 228.59 to 252.13 rupees.
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Meanwhile, the OMC profit margin on fuel items stands at 47 paise, and dealers earn a commission of 41 paise. Consequently, the OMC margin on gasoline has risen to 6.47 rupees and the dealers’ commission now stands at 7.41 rupees per liter.
The Finance Department states that the OMC margin and dealers’ commission on petroleum items will experience an additional boost.
As per the report, the transportation cost for acquiring petroleum items per liter has surged by Rs 1.60, and the transportation cost of gasoline per liter has risen from Rs 3.77 to Rs 5.37.