ISLAMABAD: After raising the price of petrol by Rs 13.55 per liter to Rs 272.89 from February 1, the caretaker government seems set to increase the rate of high-speed diesel (HSD) by Rs 8 per liter with effect from February 16.
Petrol price could also see a slight increase of 80 paise per litre.
According to the calculation, the price of HSD will be increased due to fluctuations in world oil prices.
The price of diesel could increase from the existing Rs 278.96 per liter to Rs 286.97 per liter if the caretaker government hikes its price depending on insurance and exchange rate adjustments.
HSD is widely used in the transportation and agricultural industries. Any increase in its price will therefore have a significant inflationary impact on the masses.
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Pakistan State Oil (PSO) paid a premium of $9.43 per barrel for petrol, down from $9.47 seen in the last fortnight and a premium of $6.50 per barrel for HSD imports.
The estimated exchange rate adjustment for petrol is 50 paise and Rs 1.70 per liter per HSD.
The government could keep the price of kerosene unchanged at Rs 186.62 per liter due to a nominal increase in its price of 62 paise per litre.
However, the price of light diesel (LDO) could see an increase of Rs 2.50 per litre, from the existing Rs 166.86 per liter to Rs 169.62 per liter from the coming fortnight. The LDO is mainly used in industry.
Kerosene oil is used in remote areas such as the northern part of the country where liquefied petroleum gas was not available for cooking purposes.
The Pakistan Army was also a key user of kerosene in the northern part of the country.
The calculation for the fortnight starting February 16 is based on the current rate of oil tax and general sales tax.
Brent has risen by around $1.50 a barrel since February 1 to $83 from $81.55 a barrel, while HSD has become more expensive by around $3 a barrel.
Recommended fuel prices for the first half of February have yet to be processed by the Oil and Gas Regulatory Office.
The Authority has calculated the prices of oil prices taking into account the monthly tax targets and the estimated fuel consumption and supply costs of the PSO.
