Islamabad, February 15, 2024 – The caretaker government in Pakistan is poised to announce new petroleum prices today for the second half of February 2024, with changes expected to come into effect from February 16, 2024.
Considering economic factors, the interim government is contemplating a possible increase in High-Speed Diesel (HSD) prices by Rs8 per litre, while keeping petrol prices unchanged. The proposed adjustment, from the current Rs285 to Rs293 per litre for HSD, is attributed to fluctuations in premiums and exchange rates. The decision is pending further assessment and is scheduled for implementation on February 16, 2024.
Pakistan State Oil (PSO) reports a $9.43 per barrel premium on petrol and $6.50 per barrel on HSD. Although the petrol premium has slightly decreased from the last fortnight, HSD’s premium remains stable. Exchange rate adjustments of 50 paisa for petrol and Rs1.70 per litre for HSD contribute to the potential rise in fuel prices.
In an effort to maintain stability, kerosene oil prices are expected to remain steady, while there is a consideration for a Rs2.50 per litre increase in the rate of light diesel oil (LDO).
The proposed petroleum prices are calculated based on existing rates of petroleum levy (PL) and general sales tax (GST). The government is carefully weighing these factors to strike a balance between economic considerations and consumer affordability.
The rise in Brent crude oil prices to $83 per barrel from $81.55 since February 1 is a contributing factor to the contemplated price adjustments. Additionally, HSD prices have surged by approximately $3 per barrel in the same period.
While awaiting finalization from the Oil and Gas Regulatory Authority (Ogra) on the recommended fuel prices for the first half of February, the caretaker government emphasizes a careful consideration of monthly tax targets, estimated fuel consumption, and the supply cost of Pakistan State Oil (PSO).
As Pakistan approaches a potential petroleum price adjustment, the caretaker government remains mindful of the delicate balance between economic realities and the impact on consumers. The decision to maintain petrol prices and potentially increase HSD prices reflects the government’s commitment to responsible economic management amid global market fluctuations. Consumers and stakeholders are eagerly anticipating the official announcement as they monitor developments in the energy sector.
