As the new year approaches, the government is expected to make an announcement regarding fuel prices. Forecasts suggest a possible price hike for High-Speed Diesel (HSD) while maintaining the current rates for MS petrol.
Industry experts predict that the price of MS petrol will likely remain unchanged at Rs. 252.1 per liter, thanks to low global demand and stable import premiums. This stability offers some relief to motorists as the new year begins. On the other hand, High-Speed Diesel (HSD) may increase by Rs. 3.62 per liter, bringing its cost to an anticipated Rs. 259 per liter.
These expectations stem from mixed trends in the international oil market. The premium on MS petrol remained steady at $8.69 per barrel, a factor contributing to the decision not to adjust its price. Additionally, the Pakistani rupee exhibited stability, holding firm at the 278 level during the evaluation period. This consistency in currency value has played a critical role in mitigating larger fluctuations in fuel pricing.
In contrast, the upward adjustment in HSD prices reflects the higher demand for diesel during the winter months, particularly in industries like transportation and agriculture, which heavily rely on diesel-powered machinery and vehicles.
Read more: Punjab reduces transport fares by 30 to 70 rupees following cut in petrol, diesel prices
Looking back at the previous fortnight, the government had opted to keep petrol prices unchanged at Rs. 252.1 per liter. During the same period, the price of diesel was reduced by Rs. 3.05 per liter, bringing it down to Rs. 255.38. The upcoming adjustment may reverse this trend, at least for HSD users, while maintaining a stable outlook for petrol consumers.
The anticipated changes highlight the volatile nature of fuel pricing in Pakistan, which is influenced by a combination of global oil market dynamics and domestic economic conditions. For consumers, the potential stability in petrol prices offers some respite, but the possible increase in diesel rates could impact costs across industries that rely on this essential fuel. As the government prepares its announcement, all eyes will be on the final decision and its implications for the broader economy.