ISLAMABAD: The government has increased the price of high speed diesel (HSD) up to Rs 5 per liter effective from October 16, 2024.ASIA and Midland Oil reach amicable settlement on Block-8 in Baghdad, Iraq

 The price of diesel has been raised following fluctuation in global oil prices.

However, the government had maintained the price of petrol despite rising trends.

The price of diesel has been increased from Rs 246.29 to Rs 251.29 per liter, registering an increase of Rs 5 per liter.

The oil industry had projected an increase in the price of high speed diesel up to Rs 10.25 per liter in line with fluctuation in global oil prices effective from October 16, 2024.

High speed diesel is widely used in the transport and agriculture sectors. Therefore fresh increase in its price will have a major inflationary impact on consumers. 

The price of petrol has been maintained at Rs 247.03 per liter. 

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

The finance ministry in a statement said that oil and gas regulatory authority (Ogra) had worked out variation in consumer prices in line with global prices.

In its working submitted to Ogra, Pakistan State Oil (PSO) had submitted a working paper to be submitted to the Oil and Gas Regulatory Authority (OGRA) on October 15th. Based on preliminary calculations, petrol price was supposed to be increased by Rs3.95 per liter, kerosene oil by Rs7.85 per liter, and light diesel oil (LDO) by Rs8.33 per liter.

The oil and gas regulatory authority (Ogra) had also proposed the government to increase the margins of oil marketing companies (OMCs) and dealers.

The regulator has proposed increase in profit margins for oil companies them to Rs9.22 per liter, while petrol dealers to Rs10.04 per liter.

These industry calculations were based on current government taxes and without any exchange rate adjustments.