ISLAMABAD: The federal government has increased the price of high-speed diesel (HSD) by Rs11.30 per litre for the next fortnight, while keeping petrol prices unchanged, according to a notification issued by the Petroleum Division on the recommendation of the Oil and Gas Regulatory Authority (Ogra).
With the latest adjustment, the price of HSD has been fixed at Rs268.38 per litre until February 15, up from Rs257.08 during the previous 15-day period. Petrol prices, however, will remain unchanged at Rs253.17 per litre.
Officials attributed the hike in diesel prices to rising international crude oil rates over the past week, triggered by heightened regional tensions and an order by the US president to deploy a US Navy strike group to the Persian Gulf. This development pushed up HSD prices in Arab and other global markets.
High-speed diesel is a key fuel for the industrial and commercial sectors and is extensively used by trucks, buses, and large power generators. As a result, the sharp increase is expected to draw strong criticism from the business community, given its potential impact on transport costs, inflation, and industrial activity.
Due to the increase in HSD prices, jet fuel rates have also been raised slightly for the coming fortnight.
Meanwhile, despite ongoing geopolitical tensions, the US Energy Information Administration (EIA) has projected that Brent crude prices will average lower in 2026 and 2027, as global oil production is expected to exceed demand. International analysts estimate that worldwide liquid fuel production could rise by around 1.4 million barrels per day in 2026, driven by higher output levels.
Separately, Ogra has also notified revised prices for liquefied petroleum gas (LPG) for the month of February, reflecting increased winter demand in international markets. The consumer price of LPG has been raised by Rs6.37 per kilogram to Rs226.05 per kg, compared to Rs219.67 per kg in January.
The LPG producer price is linked to the Saudi Aramco contract price and the exchange rate of the US dollar. For February, the Saudi Aramco contract price increased by 3.83 per cent, while the average dollar exchange rate declined slightly by 0.14 per cent. As a result, the price of an 11.8kg LPG cylinder has increased by Rs75.71.
Story by Kalbe Ali
