Starting from January 1, 2025, fuel prices in Pakistan are set to rise, with significant increases expected in diesel prices. According to recent market updates, the price of high-speed diesel (HSD) is likely to rise by Rs3.62 per litre, bringing its new price to Rs259. This price hike is expected to affect heavy transport vehicles and the agricultural sector, as diesel is primarily used in these areas. Meanwhile, petrol, which is mostly used in passenger vehicles, will experience a modest increase of just 11 paisa per litre, bringing the new price to Rs252.11.
The adjustments in fuel prices come as part of the regular review process carried out by the government. Energy experts suggest that the increase in demand for diesel has been partly influenced by reduced fuel smuggling from neighboring Iran. This move is seen as a part of ongoing efforts to control the fuel supply chain and regulate prices within the country. While the price of kerosene oil is expected to remain unchanged at Rs161.66 per litre, the price of light diesel oil (LDO) may rise by Rs3.03, reaching Rs151.97 per litre.
The prices of petrol, diesel, and other fuels are subject to fluctuations based on various factors, including global oil rates, the exchange rate, and local taxes. The premium on oil is currently $8.69 per barrel, which has been taken into consideration while calculating the price adjustments. Additionally, the government uses a system called the inland freight equalisation margin to address price differences for petrol and light diesel oil in different regions of the country. This system is expected to maintain an equal margin of Rs7.92 per litre for petrol and Rs4.18 per litre for high-speed diesel.
The Oil and Gas Regulatory Authority (OGRA) is responsible for finalizing these fuel price calculations. On the last day of December 2024, OGRA will submit its calculations to the federal government for approval. If the changes are confirmed, they will come into effect from January 1, 2025. This move is part of ongoing efforts to balance the cost of fuel and its supply in the country, especially considering the demands of various industries and sectors relying on fuel for their operations.
In conclusion, with the expected increase in fuel prices, consumers across Pakistan will see a slight rise in the cost of petrol and a more noticeable hike in diesel prices. These changes reflect global oil trends and the government’s efforts to stabilize the domestic fuel market. As always, the impact of these price adjustments will be closely monitored by both consumers and industries relying on fuel for their operations.
Also Read: New Petrol and Diesel Prices in Pakistan!
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