Get prepared, Pakistan! Tonight, the prices of petrol, diesel, and other petroleum products in Pakistan are expected to increase. This is mainly due to a rise in global oil prices and the country’s struggling economy.
Latest reports indicate that the price of petrol will be hiked by Rs. 5 (2%), bringing it to Rs. 280.62 from the previous rate of Rs. 275.62. High-speed diesel will also see a Rs. 2 increase, reaching Rs. 289.33 per litre from Rs. 287.33. Additionally, light diesel oil and kerosene oil will also see slight price increases.
The Cause
Curious about the reasons behind these adjustments? Pakistan adjusts fuel prices every 15 days based on global oil trends and the exchange rate of the dollar against the Pakistani rupee. The Pakistani rupee has been relatively stable recently.
These revised prices will come into effect on March 1st. The government takes into account various factors such as the needs of Pakistan State Oil, taxes, and global oil prices when determining fuel prices. Recent geopolitical tensions and supply concerns have contributed to a nearly 10% increase in oil prices in the first two months of 2024.
Why is this significant? Pakistan imports the majority of its oil, and with a struggling economy and high inflation, every penny counts. To stabilize the economy, the government reached an agreement with the International Monetary Fund last July, which included tough conditions like higher taxes and energy costs.
As fuel prices rise, the cost of living and transportation will also increase. In January, petroleum product sales already dropped by 4% as people started spending less due to economic concerns.
So, while your car keeps moving, the global oil market continues to churn—and it shows no signs of stopping soon.
