After four decreases, the petrol price in Pakistan has been increased by the federal government. According to a notification by the Finance Ministry, petrol has not been changed. Meanwhile, the high-speed diesel (HSD) price has been increased by Rs. 5 /liter, meaning it will now cost Rs. 251.29/liter instead of Rs. 246.29/liter. The new prices will be applicable from October 16, 2024, for the next fortnight.
Anticipation About Petrol Price in Pakistan
Earlier media reports suggested that the Pakistan State Oil (PSO) was in the process of drafting a working paper to present to the Oil and Gas Regulatory Authority (OGRA) on October 15. This document reportedly proposed price revisions across various fuel types. Preliminary calculations indicated that petrol price might rise by Rs. 3.95/ liter, high-speed diesel (HSD) by Rs. 10.25/liter, kerosene oil by Rs. 7.85/liter, and light-diesel oil (LDO) by Rs. 8.33 /liter.
Once OGRA reviewed the proposed adjustments, the working paper was sent to the government for final approval. Following the prime minister’s approval, the Finance Ministry officially announced the new fuel prices.
A significant factor behind this anticipated hike was OGRA’s proposed Rs. 2.75/liter increase to enhance the profit margins of oil companies and petrol stations. If accepted, oil companies’ profits per liter were expected to rise to Rs. 9.22, while petrol dealers’ margins would reach Rs. 10.04.
Furthermore, another primary reason for this revision is the fluctuation in oil prices in the international market, which has a direct impact on the petrol price in Pakistan. The revision of fuel prices will impact the country’s inflation rate as these prices are directly linked with daily commodity prices.
What is your take on the new petrol price in Pakistan? Would it impact the inflation rate? Please tell us in the comments section.
