Monday, April 15, 2024

Pakistan Likely to Increase Petroleum Prices from 16th Feb

February 14, 2024, there are indications that the government of Pakistan is contemplating a hike in the price of high-speed diesel (HSD) by Rs6.3 per litre for the latter part of February. This potential increase comes amidst fluctuations in global oil prices and other economic factors impacting the local fuel market.

The ex-refinery price of HSD, which serves as a key determinant in setting retail prices, has risen significantly by approximately Rs8 per litre. This increase brings the current price of HSD to Rs206.57 per litre, reflecting a notable uptick compared to the previous fortnight’s rate of Rs198.56 per litre. Conversely, the ex-refinery price of petrol has experienced a more modest uptick of Rs0.85 per litre, reaching Rs190.32 per litre.

Moreover, there has been a slight appreciation of the local currency against the US dollar since the last pricing decision. This appreciation, with a weighted average rate of around PKR 279.37 per USD, contributes to the overall calculation of fuel prices in the domestic market.

Considering these factors, the anticipated net change for HSD and petrol, after accounting for the exchange rate adjustment, is expected to be an increase of Rs6.3 and Rs0.35 per litre, respectively.

It’s important to note that while these adjustments are under consideration, the final determination of fuel prices is subject to various factors, including global oil market trends and exchange rate fluctuations. As such, the government will finalize and announce the new prices at midnight on February 15, 2024.

These adjustments in fuel prices are significant as they directly impact consumers, businesses, and various sectors of the economy. Moreover, they reflect the government’s efforts to manage fuel subsidies and maintain fiscal stability in light of external economic pressures.

The government’s decision to adjust fuel prices is part of its ongoing efforts to balance economic considerations and ensure the sustainability of the energy sector while striving to mitigate the impact on consumers and the broader economy.

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