The Government of Pakistan is likely to increase the price of high-speed diesel (HSD) by Rs. 8 per liter on February 16, 2024.
The decision will be confirmed tomorrow and hinges on adjustments related to premium rates and exchange rates.
If the proposed adjustments are implemented, the price of HSD could rise from Rs. 285 to Rs. 293 per liter. These calculations for the new fortnight starting February 16 are based on current rates of petroleum levy and general sales tax.
The government is also considering maintaining the price of kerosene oil (kero) but could revise upwards the rate of light diesel oil (LDO) by Rs. 2.50 per liter.
MS petrol rates will likely remain unchanged for the upcoming fortnightly review.
Also, market trends indicate an increase in the price of Brent by around $1.5 per barrel to $83. Notably, the cost of HSD increased by approximately $3 per barrel during the same period.
It is pertinent to mention that Pakistan State Oil (PSO) recently paid a premium of $9.43 per barrel for petrol, a slight decrease from the previous figure of $9.47 recorded in the last fortnight. Similarly, the premium paid for HSD stands at $6.50 per barrel. Additionally, an estimated exchange rate adjustment of 50 paisas for petrol and Rs. 1.70 per liter for HSD is anticipated.
Petroleum prices in Pakistan have remained high for much of the current fiscal year. On January 31, 2024, the price of petrol was raised by Rs. 13.55 per liter to Rs. 272.89 per liter, while the price of high-speed diesel was increased by Rs. 2.75 per liter to Rs. 278.96 per liter.
