Despite rising international oil prices, the government has kept petrol prices stable but increased the cost of high-speed diesel (HSD) by Rs5 per litre for the next fortnight. Consequently, diesel prices have risen from Rs246.29 to Rs251.29 per litre, while petrol remains at Rs247.03 per litre.
Due to this price increase, high-speed diesel, essential for transport and agriculture, could lead to higher inflation. Meanwhile, petrol, primarily used in motorbikes and cars, has seen increased demand in Punjab due to restrictions on using local gas.
The Finance Ministry noted that the Oil and Gas Regulatory Authority (OGRA) adjusted prices based on global trends. OGRA also suggested raising the margins for oil marketing companies (OMCs) and dealers to Rs 9.22 and Rs 10.04 per litre, respectively, without adjustments for taxes or exchange rates.
Kerosene, used mainly in the remote northern regions for cooking where LPG is unavailable, and light diesel, utilized in industries, also reflects these pricing strategies.
The market has seen a rise in smuggled petroleum products from Iran, threatening refineries’ local sales. Moreover, while Saudi Arabia plans to establish a refinery in Pakistan, smuggling could undermine these efforts.
It is important to note that the government imposes a Rs60 per litre petroleum development levy (PDL) on petrol and diesel.
