Pakistan raises diesel and petrol prices against expectation of cut

The Finance Division of Pakistan has announced revised fuel prices for the fortnight ending November 15th.

The price of High Speed Diesel (HSD) has increased by 1.5% or PKR 3.85, bringing it to PKR 255.14 per liter.

Motor spirit prices have gone up by 0.55% or PKR 1.35, now costing PKR 248.38 per liter.

Conversely, kerosene prices have been reduced by PKR 1.48 to PKR 161.54 per liter, and Light Diesel Oil prices have dropped by PKR 2.61 to PKR 147.51 per liter. These new prices are effective from November 1, 2024.

Analysts had anticipated a reduction in motor spirit (MS) and high-speed diesel (HSD) prices by PKR 2 and PKR 3 per liter, respectively.

However, the government decided to increase the prices instead. This hike could be due to a revision of the oil marketing companies' (OMC) margins, or an increase in the petroleum levy to address the revenue shortfall.