Pakistan Is Likely to Raise Petroleum Prices on February 16th
February 14, 2024: It appears that the Pakistani government is considering raising the price of high-speed diesel (HSD) by Rs6.3 per liter for the second half of the month. This possible rise coincides with changes in the price of oil globally and other economic factors that affect the regional fuel market.
Ex-refinery HSD prices have increased dramatically by almost Rs8 per litre, which is a major factor in determining retail prices. With this rise, the price of HSD is now Rs206.57 per litre, which is a significant increase over the previous fortnight’s rate of Rs198.56 per litre. On the other hand, the price of gasoline, ex-refinery, has increased by a very small Rs0.85 per litre to reach Rs190.32 per litre.
Furthermore, since the previous pricing decision, there has been a minor increase in the value of the local currency relative to the US dollar. With a weighted average rate of about PKR 279.37 per USD, this appreciation goes into determining the total cost of petroleum in the domestic market.
After taking into account the currency rate adjustment, these considerations lead to the predicted net change for HSD and fuel to be an increase of Rs6.3 and Rs0.35 per liter, respectively, after accounting for the adjustment.
It is noteworthy that although these modifications are being contemplated, the ultimate determination of fuel costs is contingent upon other circumstances, such as worldwide patterns in the oil market and variations in exchange rates. As a result, at midnight on February 15, 2024, the government will decide and declare the new rates.
Fuel price changes are important because they have an immediate effect on businesses, consumers, and other economic sectors. Additionally, they show the government’s attempts to control fuel subsidies and preserve fiscal stability in the face of outside economic challenges.
The government’s decision to modify fuel prices is a component of its continuous endeavors to maintain equilibrium with economic factors, guarantee the energy sector’s viability, and attempt to lessen the effects on customers and the overall economy.
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