Petroleum prices in Pakistan are projected to rise with the start of the New Year, impacting the first half of January 2025. According to industry sources, high-speed diesel (HSD) prices may increase by Rs3.62 per litre, while petrol might see a minimal rise of Rs0.11 per litre. However, the government is considering maintaining petrol prices at their current level of Rs252.10 per litre. Kerosene and light diesel oil (LDO) are expected to increase by Rs0.05 and Rs3.03 per litre, respectively.
These estimates account for current government taxes and the Inland Freight Equalisation Margin (IFEM). For petrol, the IFEM stands at Rs7.92 per litre, while HSD has an IFEM of Rs4.18 per litre. Dollar exchange rate fluctuations were not included in these calculations. Sources suggested that the government might absorb some costs to prevent further increases in petrol prices.
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Ex-refinery prices show mixed trends as well. While petrol’s ex-refinery price could drop by Rs2.81 per litre, HSD may rise by Rs3.62. Similarly, kerosene and LDO prices are likely to increase by Rs0.05 and Rs3.03 per litre. Respectively, HSD, a key fuel for transportation and agriculture, is currently priced at Rs255.38 per litre and could rise to Rs259 per litre.
The Petroleum Division, with the Oil and Gas Regulatory Authority (OGRA), is finalising pricing recommendations for submission to the Ministry of Finance. Finance Minister Muhammad Aurangzeb will announce the revised prices after consulting with Prime Minister Shehbaz Sharif. These prices will take effect from January 1, 2025, and remain valid for the first 15 days of the year.
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