Diesel Prices Set to Increase by Rs6.3/Litre, No Shift Expected in Petrol Rates

In a probable move, the government is considering a hike in the high-speed diesel (HSD) price by Rs6.3 per litre for the latter part of February, while maintaining the current petrol prices.

Estimates up to February 13, 2024, suggest that the ex-refinery price of HSD has surged by approximately Rs8, reaching Rs206.57 per litre. This is in contrast to the previous fortnight's rate of Rs198.56 per litre.

Meanwhile, the ex-refinery price of petrol has experienced a marginal uptick of Rs0.85, settling at Rs190.32 per litre.

Conversely, the local currency has seen a slight appreciation against the USD since the last pricing decision, reaching a weighted average rate of approximately PKR 279.37 per USD.

Taking into account the exchange rate adjustment, the anticipated net change for HSD and petrol stands at an increase of Rs6.3 and Rs0.35 per litre, respectively.

It's crucial to highlight that two more sessions remain for the upcoming pricing update. Therefore, the final prices will be contingent on global market dynamics and the exchange rate.

The government is slated to unveil the revised prices at midnight on February 15, 2024, with these adjustments set to be effective for the latter part of February.

As a point of reference, in the preceding fortnight, the government raised diesel and petrol prices by Rs2.5 and Rs13.55 per litre, respectively, bringing them to Rs278.96 and Rs272.89 per litre.