Islamabad, December 31, 2024 – Market forecasts suggest that Pakistan is set to adjust petroleum prices upward, with the new rates taking effect from January 1, 2025. This revision scheduled for December 31, 2024, will impact multiple petroleum products, reflecting global trends and domestic cost adjustments.
According to industry predictions, petrol prices may rise slightly by 11 paisa per litre, bringing the new price to Rs 252.11 per litre for the upcoming fortnight. Meanwhile, a more significant hike is expected for high-speed diesel (HSD), which is projected to increase by Rs 3.62 per litre, settling at an estimated Rs 259 per litre.
In contrast, the ex-depot price of kerosene oil (SKO) is expected to remain steady at Rs 161.66 per litre, providing some relief to consumers who depend on it for heating and cooking. However, light diesel oil (LDO) prices are likely to see an increase of Rs 3.03 per litre, moving from Rs 148.94 to Rs 151.97 per litre.
Energy analysts attribute these price changes to the premium on petroleum products, currently at $8.69 per barrel, and the existing levels of petroleum levy (PL), general sales tax (GST), and exchange rate stability. The Inland Freight Equalization Margin (IFEM), which helps balance transportation costs, is projected to remain at Rs 7.92 per litre for petrol and Rs 4.18 per litre for HSD.
Sources indicate that the price adjustments for petrol and LDO might be accommodated within the IFEM. The Oil and Gas Regulatory Authority (OGRA) is responsible for finalizing the price calculations based on these factors. These calculations will be submitted to the federal government for approval, with a decision expected by the end of December 31, 2024.
Energy experts caution that while the increases are modest, they reflect broader economic pressures, including fluctuating global oil prices and domestic tax policies. Consumers should prepare for slight cost increases, particularly in transportation and agriculture, where HSD is a critical input.
This periodic adjustment underscores the government’s strategy to align domestic fuel prices with global market dynamics while managing fiscal and economic challenges.