Prices of petroleum products are expected to witness one of the biggest jump in recent times, from Thursday, June 16, 2022.
This is based on data that Joy Business had secured from the Bulk Oil Distribution Companies.
According to the data, a litre of diesel is expected to go up by 11.14%, while petrol will sell at 13%.
Petrol is currently being sold on the market for about ¢10.10 per litre, whereas diesel is going for ¢12.20.
Even though prices of crude oil have been fairly stabilised on the international market, the cost of refining the products are going up on the international market.
This situation means the Oil Marketing Companies (OMCs) are likely to increase fuel prices on the market.
However, from what happened during the last pricing window, some OMCs had to renegotiate with the BDCs to reduce their prices.
This situation may occur again and therefore the margin of increment will reduce.
Meanwhile, any increment in fuel prices could force commercial transport operators to increase their fares, and this consequently will lead to increase rate of inflation and cost of living.