Islamabad, December 30, 2024 – Pakistan is expected to revise the prices of petroleum products for the upcoming fortnight starting from January 1, 2025. The government’s decision on fuel price adjustments is anticipated on December 31, 2024, with significant implications for consumers and industries alike.
According to sources within the Petroleum Division, diesel prices could rise by more than Rs4 per litre, while kerosene oil might see a modest increase of Re 1 per litre. Petrol prices, on the other hand, are likely to remain stable, providing some relief to motorists. However, there is still a possibility that petrol prices might increase, pending the official notification.
The announcement will follow a consultation between the Finance Minister and Prime Minister Shehbaz Sharif to finalise the adjustments. This decision is part of the government’s regular fortnightly review of petroleum prices, which is influenced by fluctuations in global oil markets and domestic economic considerations.
During the previous adjustment on December 15, 2024, the government had opted to keep petrol prices unchanged at Rs252.10 per litre. The price of high-speed diesel, however, was reduced by Rs3.05 per litre, bringing it down to Rs255.38 per litre. Similarly, kerosene oil saw a reduction of Rs3.32, bringing its price to Rs161.66 per litre, while light diesel was decreased by Rs2.78, settling at Rs148.95 per litre. These adjustments were made in line with international oil price trends and to balance the impact on the local economy.
The expected hike in diesel and kerosene oil prices comes amidst rising inflation and increasing costs of living in Pakistan. Diesel, being a key fuel for transportation and agriculture, is likely to have a cascading effect on goods’ prices, further burdening consumers. Similarly, an increase in kerosene prices may impact lower-income households relying on it for cooking and heating, especially during the winter season.
Market analysts suggest that global crude oil prices and the exchange rate of the Pakistani rupee against the dollar play pivotal roles in determining domestic petroleum prices. With international crude oil markets showing volatility and the rupee under pressure, further adjustments may be inevitable.
The government’s forthcoming decision will be keenly watched by citizens and industries, as any increase in fuel prices could have widespread economic repercussions. The official notification, expected on December 31, will provide clarity on the new rates and their implications.