ISLAMABAD: The federal government on Saturday increased the price of high-speed diesel (HSD) by Rs11.30 per litre, while leaving petrol prices unchanged for the next fortnight, a move likely to add inflationary pressure on transport and food costs.
In a late-night notification, the Petroleum Division said the revised prices were determined in view of fluctuations in international oil markets and on the recommendations of the Oil and Gas Regulatory Authority (OGRA).
According to the notification, the ex-depot price of high-speed diesel has been raised to Rs268.38 per litre from Rs257.08 per litre. Meanwhile, the ex-depot price of petrol has been maintained at Rs253.17 per litre.
HSD is primarily used in heavy transport and the agricultural sector, including trucks, buses, trains, tractors, tube-wells and threshers. Due to its widespread use in freight movement and farming activities, an increase in diesel prices is widely seen as inflationary, often leading to higher transportation costs and a subsequent rise in the prices of essential commodities, particularly vegetables and other food items.
Economists and market observers note that hikes in diesel prices typically have a cascading effect on the economy, as freight charges increase and are eventually passed on to consumers. The agriculture sector, which relies heavily on diesel-powered machinery and irrigation systems, is also expected to face higher input costs.
In contrast, petrol prices were kept unchanged at Rs253.17 per litre. Petrol is mainly used in private transport, including cars, motorcycles, rickshaws and other small vehicles, and directly affects the daily expenses of middle- and lower-middle-income households. By keeping petrol prices stable, the government appears to have sought to provide some relief to urban commuters and private vehicle owners.
The Petroleum Division said the revised fuel prices will be applicable from February 1 (Sunday) and will remain in effect for the next 15 days.
Fuel prices in Pakistan are reviewed on a fortnightly basis in line with changes in global oil prices, exchange rate movements, and applicable taxes and levies.
