ISLAMABAD: A mixed trend in fuel prices is anticipated for the first half of December 2024, with petrol prices expected to increase by Rs. 3 per liter and high-speed diesel (HSD) by Rs. 2.87 per liter, said sources on Thursday.
According to industry sources, despite cut in petrol and HSD prices, minor decreases are likely for kerosene oil and light diesel oil (LDO), with cuts of Rs. 0.11 per liter and Rs. 0.04 per liter, respectively for the first fifteen days of December 2024.
This forecast is based on prevailing government taxes, an Inland Freight Equalization Margin (IFEM) of Rs. 7.50 per liter on petrol and Rs. 4.15 per liter on HSD, and no dollar exchange adjustment. However, the government may opt to maintain current fuel prices, as global oil markets are expected to show some decline in the coming days, said sources.
Currently, petrol is priced at Rs. 248.38 per liter. A potential hike of Rs. 3 per liter would bring the new price to Rs. 251.38 per liter. HSD, a widely used fuel in Pakistan’s agriculture and transport sectors, is presently sold at Rs. 255.14 per liter and is expected to rise to Rs. 258.01 per liter. Kerosene oil, primarily used in rural households for cooking and heating, will see a slight reduction of Rs. 0.11 per liter, bringing its price to Rs. 165.49 per liter. Similarly, LDO, which is used in small-scale industrial applications, is expected to decrease marginally to Rs. 152.17 per liter.
Petroleum products play a significant role in Pakistan’s economy and daily life. Petrol is primarily consumed in private vehicles and motorcycles, which dominate urban and rural transportation. High-speed diesel is essential for powering heavy-duty transport vehicles, tractors, and irrigation pumps, making it a critical input for the agricultural sector. Kerosene oil continues to be a vital source of energy in remote areas where natural gas is unavailable, while LDO supports operations in smaller industries.
The Ministry of Petroleum in consultation with Oil and Gas Regulatory Authority (OGRA) is set to submit its pricing recommendations to the Ministry of Finance on November 30. Following this, Finance Minister Muhammad Aurangzeb, in consultation with Prime Minister Shehbaz Sharif, will finalize and announce the revised rates. These new prices will take effect on December 1 and remain valid for 15 days.
It is pertinent to mention that with the international oil market exhibiting volatility, any fluctuation in global crude prices can significantly impact the domestic fuel price structure as fuel costs directly influence inflation and living costs across the country.
