Petrol Prices In Pakistan
The federal government may adjust petroleum prices on Dec 31, likely raising diesel and kerosene costs, while Petrol Prices are expected to stay unchanged.
Sources within the Petroleum Division indicated that diesel prices could rise by more than Rs4 per liter, while kerosene oil might see an increase of Rs1 per liter. However, petrol prices are likely to stay stable for now.
The announcement will be made on the final day of the year, with the Finance Minister expected to consult the Prime Minister before finalizing the adjustments.
“There is a possibility that petrol prices will also be increased, but the situation will become clear once the official notification is issued,” a source said.
The expected adjustments are part of the government’s periodic review of fuel prices, influenced by global market trends and domestic economic considerations.
The federal government will make final decision about price adjustments after consultation and it will be announced on late Tuesday.
Expected Petrol Prices, Diesel Price in Pakistan
| Fuel | Current Price | Difference | Expected Price |
| Petrol | Rs 252.10 | — | Rs 252.10 |
| High-Speed Diesel | Rs 255.38 | Rs 4+ | Rs 259.38 |
| Kerosene Oil | Rs 161.66 | Rs 1+ | Rs 162.66 |
| Light Diesel Oil | Rs 148.95 | — | Rs 148.95 |
As of late December, petrol prices remain steady at Rs252.10 per liter, as announced by the Government of Pakistan and Ministry of Energy (Petroleum Division) on December 15. The price of high-speed diesel has been reduced by Rs3.05, bringing it to Rs255.38 per liter.
Kerosene oil now priced at Rs161.66 per liter, while light diesel oil has also dropped by Rs2.78 to Rs148.95 per liter.
The upcoming price hikes could further strain consumers already grappling with inflation, as the country continues to face economic challenges.
The prices of petroleum products are projected to rise with the start of the New Year, affecting the first half of January 2025.
According to industry sources, ex-depot sale prices for all petroleum products are likely to increase. High-speed diesel (HSD) is expected to rise by Rs 3.62 per liter, while petrol may see a minimal increase of Rs. 0.11 per liter.
However, the government might maintain petrol prices at the current level. Kerosene oil prices are anticipated to increase by Rs. 0.05 per liter, and light diesel oil (LDO) could see a hike of Rs. 3.03 per liter.
These estimates are based on prevailing government taxes, an Inland Freight Equalization Margin (IFEM) of Rs. 7.92 per liter on petrol and Rs. 4.18 per liter on HSD, without factoring in dollar exchange rate fluctuations. Sources indicated that the government might absorb some costs to avoid raising petrol prices further.
Ex-refinery prices are also expected to reflect mixed trends. While the ex-refinery price of petrol could decrease by Rs. 2.81 per liter, HSD may rise by Rs. 3.62 per liter. Kerosene oil and LDO prices are projected to increase by Rs. 0.05 and Rs. 3.03 per liter, respectively.
Currently, petrol is priced at Rs. 252.10 per liter, and a Rs. 0.11 increase would bring the new price to Rs. 252.21 per liter. HSD, widely used in agriculture and transportation, is currently priced at Rs. 255.38 per liter and may rise to Rs. 259. Kerosene oil, essential for cooking and heating in rural areas, is expected to increase slightly to Rs. 161.71 per liter. LDO, which supports small-scale industrial operations, could rise to Rs. 151.97 per liter.
Petroleum products are crucial for Pakistan’s economy, powering key sectors like transportation, agriculture, and industries. Petrol is primarily used in private vehicles and motorcycles, HSD supports heavy transport and agricultural machinery, kerosene oil provides energy in areas without natural gas, and LDO aids small-scale industrial activities.
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How Does the Government Fix the Petrol Prices in Pakistan?
The price of petrol in Pakistan today and tomorrow is determined by the Oil and Gas Regulatory Authority (OGRA). The price of petrol in Pakistan tomorrow depends on many factors, one of them is its supply. Lesser supply by OPEC to other countries causes a hike in its local price as well.
Increased prices of distribution and marketing also heavily impact petrol prices as retail dealers add their profit to the total cost of fuel. Added federal and government taxes make petrol prices go further up.
Impact of New Petrol Prices
The anticipated increase in diesel prices could have significant implications for transportation and industrial costs, potentially affecting overall inflation. Stable petrol prices, however, may provide some relief for private vehicle owners.
The official announcement regarding the Petrol Price 1 January 2025 will be made on December 31, 2024. Citizens are advised to stay updated as these changes could impact daily budgets and transportation expenses.
