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Home Business & Stock

Will fuel prices increase in Pakistan from Feb 15?

MM News Staff by MM News Staff
February 15, 2024
LPG prices were also slashed earlier in the day: File photo

LPG prices were also slashed earlier in the day: File photo

There are signs that the Pakistani government is thinking about raising the price of high-speed diesel (HSD) by Rs6.3 per liter later in February. This potential increase is influenced by changes in global oil prices and other economic factors affecting the local fuel market.

The ex-refinery price of HSD, a crucial factor in determining retail prices, has gone up significantly by about Rs8 per liter. This brings the current HSD price to Rs206.57 per liter, a noticeable increase from the previous rate of Rs198.56 per liter in the last two weeks. On the other hand, the ex-refinery price of petrol has seen a smaller increase of Rs0.85 per liter, reaching Rs190.32 per liter.

Additionally, the local currency has slightly gained value against the US dollar since the last pricing decision, with a weighted average rate of around PKR 279.37 per USD. This affects the overall calculation of fuel prices in the domestic market.

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

It’s crucial to note that while these adjustments are being considered, the final decision on fuel prices depends on various factors, including global oil market trends and exchange rate fluctuations. The government will announce the new prices at midnight on February 15, 2024.

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