High-speed diesel (HSD) rates are expected to tumble by approximately Rs11.50 per litre in the upcoming fortnight, while petrol prices are projected to rise by about Rs1.40 per litre. The estimated change in fuel prices is reportedly based on recent exchange rates and international market movements.

 

Reports indicate that the change will go into effect from August 16, after which prices will remain locked for two weeks. The Rs11.50 per litre decrease in HSD prices translates into a fall of four percent in the price of the commodity. Conversely, petrol prices are slated to witness an uptick of 0.5 percent.

 

However, it merits a mention that the aforementioned price changes are projections and not final price revisions. The federal government reserves the right to make adjustments prior to locking fuel prices for the upcoming fortnight.  

 

Data from reports has revealed that over the past two weeks, the price of diesel in the international market has reportedly decreased by approximately $4.5 per barrel. Petrol prices during the same period logged an increase instead, growing by 15 cents per barrel.

 

As per reports, the rupee also recorded an increase in value, appreciating modestly against the dollar. For reference, an appreciation of the rupee makes it easier to purchase fuel domestically, as Pakistan is a net importer of petroleum-based fuels.

 
Currently, the price of HSD stands at a staggering Rs285.83 per litre. The price of HSD has increased significantly since May 15, rising by approximately Rs27 per litre. In contrast, the ex-depot rate of petrol currently sits at Rs264.61 per litre but is expected to rise in the upcoming fuel price revision. 

 

Light diesel oil and Kerosene rates are projected to fall by approximately Rs7 per litre and Rs6 per litre, respectively. However, the drop in HSD prices is likely to have the most noticeable impact on the economy.

 

This is because a fall in HSD rates lowers the operating costs for both the transport and agriculture sectors. This decrease could have positive effects on the economy, as it could lead to a drop in food prices. HSD is widely used in agriculture to power tractors and other mechanised farming equipment.

 

A decrease in HSD rates could also positively impact the transport sector, given its reliance on fuel. For instance, the transportation sector has diesel as a primary input and thus requires vast quantities of the commodity. Lower HSD prices imply lower operational costs for businesses in the transportation sector.