Diesel Prices to Surge Rs 3.29, Petrol to Drop Rs 1.87/Litre

The price of high-speed diesel (HSD) is likely to go up by Rs 3.29 per litre effective from June 16, 2023, in line with the fluctuation in global oil prices.

However, the price of petrol may go down by Rs 1.87 per litre.

These prices are based on the current rate of Petroleum Levy and GST.

The government is currently charging Rs Rs 50 per petroleum levy on petroleum products like petrol, diesel and HOBC.

These are the highest rates the government is charging oil consumers.

The Pakistan State Oil (PSO) is also seeking an exchange adjustment for petrol at Rs 3.50 per litre and diesel at Rs 0.31 per litre.

Furthermore, the government currently imposes an Inland Freight Equalization Margin (IFEM) of Rs 4.04 per litre of petrol and Rs 3.79 per litre of diesel.

If case government approves the suggested prices, it will result in a decrease in petrol price to Rs 260.13 per litre, compared to the current market rate of Rs 262 per litre.

However, diesel price could go up to an ex-depot price of Rs 256.29 per litre, from the current price of Rs 253 per litre.

High-speed diesel is widely used in the transport and agriculture sectors. Therefore, any increase will result in posing a serious threat to the agriculture sector.

It will also have an inflationary impact on consumers.

In contrast, kerosene prices are expected to witness a hike of Rs 2.10 per litre, reaching an ex-depot price of Rs 166.17 per litre, while Light Diesel Oil (LDO) might experience an increase of Rs 2.48 per litre, bringing the ex-depot price to Rs 150.16 per litre.

These adjustments could impact households relying on kerosene for cooking and LDO for various industrial processes.

The fluctuations in fuel prices reflect the government’s ongoing efforts to strike a balance between stabilizing the economy and addressing the challenges in the energy sector.Pakistan Economic Survey 2022-23: Oil Demand Declined by 21.9%

The government aims to maintain reasonable prices for citizens while managing the fiscal constraints faced by the country.

The anticipated decrease in petrol prices is expected to provide some relief to motorists, as the cost of running vehicles is likely to be slightly reduced.

However, the substantial increase in diesel prices might pose a burden on industries such as transportation, agriculture, and manufacturing, where diesel is a primary source of fuel.