Government raises high-speed diesel price by Rs2.78 per litre

The federal government has increased the prices of high-speed diesel (HSD) and kerosene oil, effective September 16, while keeping petrol rates unchanged for the second consecutive review period. 

HSD has been raised by Rs2.78 per litre to Rs272.77 from Rs269.99, and kerosene oil has gone up by Rs3.15 to Rs179.96. Petrol remains at Rs264.61 per litre.

The price revision comes as part of the government’s fortnightly review, which factors in international oil prices, currency exchange rates, and domestic supply-demand dynamics. The Oil and Gas Regulatory Authority (OGRA) submitted the final proposal to the Prime Minister, with inputs from the Finance, Energy, and Petroleum Divisions.

Alongside retail prices, the government also revised the Inland Freight Equalization Margin (IFEM) for petroleum products. The IFEM for HSD increased from Rs4.10 to Rs6.31 per litre, while petrol’s IFEM rose from Rs6.65 to Rs8.40 per litre. Minor adjustments were also made for kerosene oil and light diesel oil.

Industry sources say the increase in HSD and kerosene will directly affect transportation and logistics costs, particularly for heavy transport vehicles, public transport, and agricultural machinery, which could push up prices of food and other essential goods. 

This price adjustment comes amid rising concerns over inflation and cost of living, with experts highlighting that fuel cost is a key driver of overall price increases in Pakistan’s economy.