The interim government has raised the petrol prices in Pakistan by Rs. 2.73. An official notification states that the new price for petrol is now Rs. 275.62, up from the previous Rs. 272.89. Similarly, the price of diesel has increased by Rs. 8.37, reaching Rs. 287.33 from Rs. 278.96.
Prior reports in the media had suggested a potential increase in fuel prices of up to Rs. 11 per liter. This anticipated hike in petrol prices in Pakistan is linked to rising global oil prices and increased import premiums, nullifying any gains from a slight improvement in the exchange rate.
The new prices will be effective from February 16, 2024.
It’s important to note that just before the general elections on January 31st, the government had already raised petrol prices by Rs. 13.55 and diesel prices by Rs. 2.75 per liter. This resulted in petrol being priced at Rs. 272.89 per liter and diesel at Rs. 278.96 per liter.
Global Market Trends
According to media reports, global market prices for petrol and diesel have increased in the last 15 days. Additionally, Pakistan State Oil had to make extra payments for import premiums due to a slight rise in the value of the rupee against the dollar.
Over the past two weeks, petrol prices have gone up from $88.7 to approximately $89.9 per barrel, and diesel prices have risen from $98.4 to $101.82 per barrel. Furthermore, the rupee has experienced a slight increase against the dollar, settling at around Rs. 279.7.
The government continues to apply premiums on cargo, maintaining them at $9.7 per barrel for petrol and $6.5 per barrel for diesel.
It’s worth noting that the government is already collecting a significant amount in taxes, approximately Rs. 82 per liter, on both petrol and diesel. Despite not imposing sales tax on petroleum products, the government has set the Petroleum Development Levy at Rs. 60 per liter for both products. Additionally, there’s a customs duty of approximately Rs. 17 to 20 per liter on petrol and diesel.
