Diesel price up by Rs5, petrol unchanged

Despite a rising trend in international oil prices, the government kept the petrol price unchanged, while it jacked up high speed diesel (HSD) price by Rs5 per litre for the next fortnight.

With an increase of Rs5 per litre, the price of diesel goes up from Rs246.29 per litre to Rs251.29 per litre, while the petrol price has been maintained at Rs247.03 per litre.

In view of fluctuation in global oil prices, the prices of diesel and petrol were projected to be hiked up to Rs10 and Rs4 respectively.

High speed diesel is widely used in the transport and agriculture sectors. Therefore, the latest hike in its price may have an inflationary impact on consumers.

The petrol is mostly used in motorbikes and cars. Due to the ban on the use of indigenous gas in Punjab province, the demand for petrol has swollen.

The finance ministry said that Oil and Gas Regulatory Authority (OGRA) had worked out variation in line with global prices.

The Oil and Gas Regulatory Authority (OGRA) had also proposed the government to increase the margins of oil marketing companies (OMCs) and dealers to Rs9.22 per litre and Rs10.04 per litre respectively.

The industry calculations were based on taxes and without any exchange rate adjustments.

Kerosene oil is used in remote areas, especially in northern parts of the country, where LPG was not available for cooking purpose. Light diesel is used in industries.

The market has witnessed a jump in smuggled petroleum products from Iran, posing a threat to the sale of petrol and diesel by the refineries.

Saudi Arabia plans to set up a refinery in Pakistan but oil smuggling from Iran may dent the plans of setting up new refineries in the country.

It is pertinent to mention that the government is collecting Rs60 per liter petroleum development levy (PDL) on petrol and diesel.