The price of high-speed diesel is set to rise by Rs3.62 per liter, reaching Rs259 per liter, effective January 1, 2025. In contrast, petrol prices are expected to increase marginally by just 11 paisa per liter, bringing the new price to Rs252.11 per liter.
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Diesel is predominantly used in heavy transport and agriculture, making this hike particularly impactful on these critical economic sectors. Conversely, petrol, primarily consumed in passenger vehicles, will see a minimal increase, offering slight relief to car owners.
Other Fuel Adjustments:
- Kerosene oil: Prices are likely to remain unchanged at Rs161.66 per liter, offering stability for users relying on this fuel.
- Light diesel oil: A projected increase of Rs3.03 per liter will raise its price to Rs151.97 per liter.
Market Factors and Price Calculations: The current oil premium stands at $8.69 per barrel, with new price calculations incorporating the Petroleum Levy Rate, General Sales Tax, and Currency Exchange Rate. The Inland Freight Equalization Margin plays a critical role, set at Rs7.92 per liter for petrol and Rs4.18 per liter for high-speed diesel, helping mitigate regional price disparities.
The Oil and Gas Regulatory Authority (OGRA) will submit its final calculations to the federal government on December 31 for approval.
Economic Impact: The diesel price hike is likely to increase transportation and agricultural costs, which could ripple through the economy, affecting goods and services. On the other hand, the marginal rise in petrol prices provides a modicum of relief to individual consumers.
Balancing these price adjustments with economic stability remains a challenge for the government. Effective measures are required to minimize the burden on key sectors while ensuring the fiscal health of the nation.
