You are currently viewing Pakistan Government to Hike Diesel Price by Rs 8/litre

Pakistan Government to Hike Diesel Price by Rs 8/litre

Islamabad – The Pakistani government is expected to raise the price of high-speed diesel (HSD) by Rs 8 per litre on February 16, sources say.

The decision awaits final changes to exchange and premium rates tomorrow.

Based on current taxes and levies, the proposed hike would take the HSD price from Rs 285 to Rs 293 per litre.

The government may also increase light diesel oil by Rs 2.50/litre while keeping kerosene oil unchanged.

Petrol prices are likely unchanged in the next fortnightly review.

Global Brent crude is seen rising $1.5 to $83/barrel. Meanwhile, HSD climbed around $3/barrel recently.

Pakistan State Oil recently paid $9.43/barrel premium for petrol, slightly below the previous $9.47. The HSD premium is $6.50/barrel.

Read More: Pakistan Approves Over 35% Gas Price Hike to Meet IMF Terms

Estimated exchange rate adjustment is 50 paisas for petrol and Rs 1.70/litre for diesel.

Fuel prices in Pakistan have stayed elevated most of this fiscal year. Petrol went up Rs 13.55/litre to Rs 272.89 on January 31, with diesel rising Rs 2.75 to Rs 278.96.

Further increases despite high inflation will worsen public hardship. But the cash-strapped government has limited options to contain fiscal pressures.

More price hikes may be unavoidable given Pakistan’s economic crisis. Global factors also continue driving domestic fuel rates up.

Leave a Reply