KARACHI: Fuel prices in Pakistan are set to rise in the upcoming fortnightly review, with the price of high-speed diesel (HSD) expected to increase by more than Rs10 per litre due to a surge in global petroleum prices.
According to insiders, petrol prices may increase by Rs3-4 per litre, while HSD (high-speed diesel) is projected to see a significant hike. The rising demand for petroleum products, especially HSD, has taken the market by surprise, with average daily sales spiking to 24,000 litres, up from the usual 16,000-17,000 litres.
This increase is reportedly driven by dealers stockpiling products in anticipation of the upcoming price hike, rather than a genuine rise in demand from the industrial or agricultural sectors. Oil sector insiders attribute this trend to hoarding by oil marketing companies (OMCs) and dealers aiming to profit from the expected price jump.
A refinery official confirmed the surge in HSD sales but expressed uncertainty about whether the rise is due to hoarding or real demand. The true picture will emerge after the price review when it becomes clear whether sales were driven by speculation or necessity.
In recent months, the country has experienced an oversupply of diesel due to reduced demand, dropping from 750,000 tonnes to 500,000 tonnes per month, partly due to smuggling. Despite this, a private oil marketing company was allowed to import HSD, which the Oil Companies Advisory Council (OCAC) claims has led to a glut, creating operational challenges for local refineries.
This development comes as the oil sector faces mounting challenges in balancing supply, demand, and pricing in the face of global and local market dynamics.
