Govt Increases Price of Diesel by Rs 2.96 per Liter
Staff Report:
The government has increased prices of high speed diesel (HSD) by Rs 2.96 per liter effective from January 1, 2025.
The government has increased the price of High-Speed Diesel (HSD) by Rs. 2.96 per liter, up from Rs. 255.38 to Rs. 258.34 per liter.
The high speed diesel is widely used in transport and agriculture sectors. Therefore, fresh increase in its price will have inflationary impact on the masses.
The price of MS (Petrol) has also been raised by Rs. 0.56 per liter, moving from Rs. 252.10 to Rs. 252.66 per liter.
The petrol is used in motorbikes and cars. The government has not made a significant increase in its price.However, the increase in its price will also have impact on the consumers.
Petrol is an alternate fuel of CNG and its demand had increased in Punjab province especially due to ban on use of indigenous gas for the last several years. The consumers of CNG in this province use the imported gas which is expensive.
The Oil & Gas Regulatory Authority (OGRA) had worked out increase in the prices of petroleum products for the consumers, reflecting changes in international market trends over the past fortnight. The new rates will take effect on January 1, 2025.
These adjustments are a result of fluctuations in the global oil market over the last two weeks. The government aims to balance international pricing dynamics with the need to manage domestic economic impacts.
According to industry officials, the premium on petroleum products was at $8.69 per barrel which was also contributor to increase the prices of diesel and petrol.
The calculation of increase in prices had been based at current level of petroleum levy (PL), general sale tax (GST) and zero exchange rate. Inland freight equalization margin (IFEM) is projected to stay at Rs 7.92 per litre on petrol and Rs 4.18 per litre on HSD.
At present, the consumers are paying Rs 60 per liter petroleum levy each on petrol and diesel. The petroleum levy goes into federal exchequer.
