New year likely to start with hike in diesel prices
ISLAMABAD: Owing to impact of oil prices in international market, the prices of high-speed diesel (HSD), kerosene and light diesel oil (LDO) are estimated to increase by about Rs4 to Rs5 per litre on New Year’s Eve, for the first fortnight of 2025.
However, informed sources said, the ex-depot price of petrol was estimated to be range-bound, swinging either way with a Re1 per litre change, depending on final calculation on Dec 31.
In the mid of December, the ex-depot price of HSD was reduced by Rs3.05 (1.18pc) to Rs255.38 per litre, while the petrol price remained unchanged.
Sources said the average prices of HSD and LDO have slightly increased in the international market during the last fortnight while ex-refinery cost of kerosene oil was also slightly on the higher side. Import premium on both petrol and diesel remained unchanged while exchange rate on average remained stable.
Due to these factors, the latest calculation as of Dec 28 showed around Rs4 per litre increase in HSD, Rs5 per litre in kerosene and LDO.
An official of the Oil and Gas Regulatory Authority (Ogra) said the price difference for petrol was very small, which could be adjusted within the inland freight equalisation margin — a mechanism actually meant for uniform prices across the country.
The ex-depot petrol price currently stands at Rs252.10 per litre while that of HSD is Rs255.38 per litre.
Petrol is mostly used in private transport, small vehicles, rickshaws and two-wheelers and has a direct bearing on the budget of middle- and lower-middle class.
Most of the transport sector runs on HSD. Its price is considered inflationary as it is mostly used in heavy transport vehicles, trains and agricultural engines like trucks, buses, tractors, tube-wells and threshers and particularly impacts the prices of vegetables and other eatables.
At present, the government is charging about Rs76 per litre tax on both petrol and HSD.
Published in Dawn, December 30th, 2024