Rs8 per litre diesel price hike expected as global oil soars

ISLAMABAD: The caretaker government is considering raising the price of high-speed diesel (HSD) by Rs8 per litre starting from February 16. Similarly, petrol prices may experience a slight rise of 80 paisas per litre.

This decision is pending the federal government’s review of petrol and diesel prices on February 15, which will align with global oil price trends.

With tensions escalating in the Middle East, global oil prices have surged, prompting concerns of further increases in petroleum prices in Pakistan. Brent crude prices rose by approximately $1.5 per barrel to $83 since February 1, contributing to a $3 per barrel increase in the cost of HSD.

If the caretaker government proceeds with the diesel price hike, consumers could see the rate climb from the current Rs278.96 per litre to Rs286.97 per litre, factoring in premium and exchange rate adjustments.

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Similarly, petrol prices may experience a slight rise of 80 paisas per litre.

Given its extensive use in transportation and agriculture, an increase in HSD prices would significantly impact inflation levels among the masses. Conversely, kerosene oil prices are expected to remain unchanged at Rs186.62 per litre, with only a nominal 62 paisas per litre increase.

Meanwhile, light diesel oil (LDO), primarily utilized in industry, could see a Rs2.50 per litre increase, reaching Rs169.62 per litre for the upcoming fortnight.

These calculations for the fortnight beginning February 16 rely on existing petroleum levy rates and general sales tax figures.

However, the Oil and Gas Regulatory Authority (OGRA) is yet to finalize its recommendations for fuel prices for the first half of February, taking into account monthly tax goals and estimated fuel consumption and supply costs for the Pakistan State Oil (PSO).