The prices of petroleum products are projected to rise with the start of the New Year, affecting the first half of January 2025.
According to industry sources, ex-depot sale prices for all petroleum products are likely to increase. High-speed diesel (HSD) is expected to rise by Rs 3.62 per liter, while petrol may see a minimal increase of Rs. 0.11 per liter.Â
However, the government might maintain petrol prices at the current level. Kerosene oil prices are anticipated to increase by Rs. 0.05 per liter, and light diesel oil (LDO) could see a hike of Rs. 3.03 per liter.
These estimates are based on prevailing government taxes, an Inland Freight Equalization Margin (IFEM) of Rs. 7.92 per liter on petrol and Rs. 4.18 per liter on HSD, without factoring in dollar exchange rate fluctuations. Sources indicated that the government might absorb some costs to avoid raising petrol prices further.
Ex-refinery prices are also expected to reflect mixed trends. While the ex-refinery price of petrol could decrease by Rs. 2.81 per liter, HSD may rise by Rs. 3.62 per liter. Kerosene oil and LDO prices are projected to increase by Rs. 0.05 and Rs. 3.03 per liter, respectively.
Currently, petrol is priced at Rs. 252.10 per liter, and a Rs. 0.11 increase would bring the new price to Rs. 252.21 per liter. HSD, widely used in agriculture and transportation, is currently priced at Rs. 255.38 per liter and may rise to Rs. 259. Kerosene oil, essential for cooking and heating in rural areas, is expected to increase slightly to Rs. 161.71 per liter. LDO, which supports small-scale industrial operations, could rise to Rs. 151.97 per liter.
Petroleum products are crucial for Pakistan’s economy, powering key sectors like transportation, agriculture, and industries. Petrol is primarily used in private vehicles and motorcycles, HSD supports heavy transport and agricultural machinery, kerosene oil provides energy in areas without natural gas, and LDO aids small-scale industrial activities.
The Petroleum Division, in collaboration with the Oil and Gas Regulatory Authority (OGRA), is finalizing pricing recommendations for submission to the Ministry of Finance on December 31, 2024. The revised prices will be announced by Finance Minister Muhammad Aurangzeb after consultation with Prime Minister Shehbaz Sharif. The new prices will take effect from January 1, 2025, and remain valid for the first 15 days of the year.
