Fuel prices in Pakistan are set to undergo a mixed adjustment for the upcoming fortnight, with a significant reduction expected for diesel and a slight increase for petrol, according to industry sources and projections. These changes, effective from August 16, are driven by fluctuations in global oil markets and a modest appreciation of the Pakistani Rupee.
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Diesel Prices to Drop Significantly
The price of High-Speed Diesel (HSD), a crucial fuel for the country’s transport and agriculture sectors, is projected to decrease by approximately Rs. 11.50 per liter. This substantial reduction is a direct result of a drop in international diesel prices, which have fallen by around $4.5 per barrel over the last two weeks. The slight strengthening of the rupee against the US dollar has also contributed to this positive development for diesel consumers. HSD is currently priced at Rs. 285.83 per liter, a rate that followed a steep Rs. 27 per liter hike since mid-May.
Slight Increase Expected for Petrol
In contrast, petrol prices are estimated to see a marginal increase of about Rs. 1.40 per liter. This adjustment is due to a slight uptick of 15 cents per barrel in international petrol prices during the same period. The current ex-depot price for petrol is Rs. 264.61 per liter, following a Rs. 7.54 per liter cut on August 1.
Impact on Consumers and Economy
Petrol, used widely in personal vehicles like cars and motorcycles, directly affects the budgets of middle- and lower-middle-income families. The expected increase, while minor, will still add to the cost of daily commutes. Conversely, the significant cut in HSD prices is anticipated to provide some relief to the transport and logistics industry, which could help curb the inflationary pressures on the prices of goods.
Other Fuel Products
The price changes are not limited to just petrol and HSD. Projections also indicate a decrease in the prices of other petroleum products. Kerosene oil is expected to drop by Rs. 6 per liter, and light diesel oil (LDO) is estimated to fall by Rs. 7 per liter.
The Oil and Gas Regulatory Authority (OGRA) is currently finalizing its recommendations, which will then be submitted to the Ministry of Finance for final approval. The new prices will be formally announced and take effect from midnight on August 16.
