ISLAMABAD: Under pressure from rates in international markets, diesel price is likely to go up by Rs2.10 per litre to Rs118.63 per litre from Sunday (today).

Sources in the government said the calculations received by the Oil and Gas Regulatory Authority (Ogra) showed an increase of Rs2.10 per litre in prices of high speed diesel (HSD) for the next fortnight up to Aug 31. However, a final decision in this regard will be taken by the Ministry of Finance.

International crude oil rates have increased by one dollar to $45 per barrel during the first fortnight of August whereas the greenback has largely remained pegged around Rs163.80 during this period.

However, product prices have varied and as the demand for trucking industry bounced back globally, HSD rates have inched up globally. The government kept diesel prices at Rs116.53 per litre for the fortnight from Aug 1 to 15.

The average sale of HSD is around 600,000 tonnes per month. The fuel is consumed in tractors, trucks, buses and large electricity generators and an increase in its price means a direct impact on the agriculture and transportation sectors, thereby adding to overall inflation in the country.

Published in Dawn, August 15th, 2021