Diesel price may see Rs8 per litre increase

ISLAMABAD:

After jacking up the price of petrol by Rs13.55 per litre to Rs272.89 from Feb 1, the caretaker government appears all set to increase the rate of high speed diesel (HSD) by Rs8 per litre with effect from Feb 16.

The price of petrol might also witness a marginal increase of 80 paisas per litre.

According to calculation, the price of HSD will be increased due to fluctuation in the global oil prices.

The price of diesel might go up from existing Rs278.96 per litre to Rs286.97 per litre in case the caretaker government increases its price, depending on the premium and exchange rate adjustments.

HSD is widely used in transport and agriculture sectors. Therefore, possible increase in its price will have substantial inflationary impact on the masses.

Read more: Govt slashes diesel price by Rs7

The Pakistan State Oil (PSO) has paid $9.43 per barrel premium on petrol, down to $9.47 recorded in the last fortnight and $6.50 per barrel premium on HSD imports.

The estimated exchange rate adjustment on petrol is 50 paisas and Rs1.70 per litre on HSD.

The government might keep the price of kerosene oil unchanged at Rs186.62 per litre due to a nominal increase of 62 paisas per litre in its price.

However, the price of light diesel oil (LDO) might register an increase of Rs2.50 per litre, going up from the existing Rs166.86 per litre to Rs169.62 per litre from the upcoming fortnight. LDO is mainly used in industry.

Kerosene oil is used in remote areas like the northern part of the country where Liquefied Petroleum Gas was not available for cooking purpose.

Pakistan Army was also a key user of kerosene oil in the northern part of the country.

The calculation for the fortnight starting from Feb 16 is based on the current rate of petroleum levy and general sales tax.

The price of Brent went up by around $1.5 per barrel to $83 from $81.55 per barrel since Feb 1 while HSD had become costlier by about $3 per barrel.

The Oil and Gas Regulatory Authority has yet to work out the recommended fuel prices for the first half of February.

The authority calculated the prices of petroleum prices keeping in view monthly tax targets and estimated fuel consumption and supply cost of the PSO.