Fuel prices in Pakistan are set to rise as global oil market trends influence local rates. High-speed diesel (HSD), kerosene, and light diesel oil (LDO) prices are projected to increase by approximately Rs4 to Rs5 per litre starting January 1, 2025.
However, petrol prices are expected to remain stable, with a potential fluctuation of Re1 per litre, depending on final calculations on December 31.
In mid-December, the ex-depot price of HSD was reduced by Rs3.05 to Rs255.38 per litre, while petrol remained steady at Rs252.10 per litre. Sources suggest that international prices for HSD and LDO have risen slightly, along with an uptick in the ex-refinery cost of kerosene oil.
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Import premiums and the exchange rate have stayed stable, contributing to the modest price adjustments.
HSD is vital for heavy transport, agricultural machinery, and trains, making it a significant driver of inflation, especially for food prices. Petrol, primarily used in small vehicles and rickshaws, directly affects middle- and lower-income households.
Currently, the government imposes a tax of Rs76 per litre on both petrol and HSD. Officials from the Oil and Gas Regulatory Authority noted that minimal petrol price changes could be adjusted using the inland freight equalisation margin to maintain uniform rates nationwide.
