The interim government has announced a new increase in the price of petrol in Pakistan today. As per a notification from the Finance Division, the price of petrol has gone up by Rs. 4.13, reaching Rs. 279.75 from the current rate of Rs. 275.62. Diesel prices, however, remain unchanged. These revised prices will be effective from March 1, 2024, for the next two weeks.
Earlier reports had suggested a Rs. 5 increase in petrol prices, taking it to Rs. 280.62 from the previous Rs. 275.62. High-speed diesel will now cost Rs. 289.33 per liter, an increase of Rs. 2 from the old rate of Rs. 287.33. Even light diesel oil and kerosene oil will see hikes of Rs. 0.80 and Rs. 0.70 per liter respectively.
The Reason
Wondering about the reasons for these changes? Every 15 days, fuel prices in Pakistan are adjusted based on global oil trends and the exchange rate of the Pakistani rupee against the US dollar. The rupee has remained stable recently.
The new prices will take effect on March 1. When setting these prices, the government considers factors like Pakistan State Oil’s requirements, taxes, and global oil prices. Geopolitical tensions and supply concerns have led to a nearly 10% increase in oil prices in the first two months of 2024.
These price changes are significant as Pakistan imports 85% of its oil, and with a struggling economy and high inflation, every paisa matters. Last July, the government made a deal with the IMF to stabilize the economy, but this came with conditions such as increased taxes and energy costs.
As fuel prices rise, the cost of living and transportation also go up. In January, petroleum product sales dropped by 4% due to decreased spending amid economic concerns.
What are your thoughts on the petrol prices in Pakistan? Share your views in the comments section.
