The government has announced an increase in petrol and diesel prices.

 

The government of Pakistan has raised petrol prices by 2.73 Rs, bringing the new price to 275.62 Rs per liter. Additionally, diesel prices have increased by 8.37 Rs, with the new rate set at 287.33 Rs per liter. These adjustments will take effect from February 16, 2024.

The possibility of price hikes was under consideration due to fluctuations in global oil prices. Earlier, a significant increase of Rs13.55 per liter was witnessed in petrol prices from February 1, prompting authorities to contemplate a rise in high-speed diesel prices.

The surge in high-speed diesel prices is attributed to the volatility in global oil markets. This fuel, extensively used in transportation and agriculture, may potentially lead to inflationary pressures, impacting the public.

Pakistan State Oil (PSO) has imposed premiums of $9.43 per barrel on petrol, down from $9.47 in the previous fifteen days, and $6.50 per barrel on High-Speed Diesel.

Furnace oil, utilized in remote areas where liquefied petroleum gas is unavailable for cooking, remains a concern.

The calculation for the fifteen-day period starting from February is based on current petroleum levy rates and general sales tax. However, the proposed fuel prices for the first half of February have not yet been implemented by the Oil and Gas Regulatory Authority.

The authority has established petroleum product prices taking into account monthly tax objectives, along with estimations of fuel consumption and supply costs for PSO fuel.