As of December 9, 2024, the latest petrol and diesel prices in Pakistan remain unchanged from the adjustments made on December 1, 2024, and will stay in effect until December 15, 2024.
The government’s decision to revise fuel prices follows a review by the Oil and Gas Regulatory Authority (OGRA), taking into account global oil price trends and the rising costs of crude oil imports. The adjustment marks an increase in the prices of key petroleum products, reflecting the impact of the global energy market on domestic fuel prices.
According to a notification issued by the Finance Division, the updated fuel prices are as follows:
• High-Speed Diesel (HSD): An increase of Rs 3.29, pushing the price to Rs 258.43 per liter, up from Rs 255.15.
• Petrol: A hike of Rs 3.72, raising the cost to Rs 252.10 per liter, compared to Rs 248.38 previously.
• Kerosene Oil: A decrease of Rs 0.62, now priced at Rs 164.98 per liter.
• Light Diesel Oil (LDO): A slight reduction of Rs 0.48, bringing its price to Rs 151.73 per liter.
These changes are part of OGRA’s regular review process, which considers fluctuations in global crude oil prices, as well as the Inland Freight Equalization Margin (IFEM) that affects the cost of transportation. The adjustment reflects the rising transportation costs and a higher premium of $9.80 per barrel for petrol imports. The government’s decision to increase fuel prices comes amid a global surge in crude oil prices, which has put pressure on the country’s ability to maintain fuel price stability.
In the past, Pakistan’s government absorbed some of the increases in IFEM to mitigate the impact of rising global oil prices on consumers. However, the recent surge in international crude oil prices has left the government with limited options for shielding consumers from the full impact. As a result, the rise in fuel prices is expected to lead to increased transportation costs, which could exacerbate inflationary pressures on households and businesses.
The latest hike in fuel prices comes at a time when Pakistan is already grappling with rising inflation and economic challenges. Citizens and businesses across the country are bracing for the potential knock-on effects, including higher prices for goods and services, as transportation costs rise due to the increased fuel prices. The government’s decision to raise fuel prices has sparked concerns across various sectors, especially those dependent on transportation, such as logistics, agriculture, and manufacturing. As fuel prices remain high, the cost-of-living pressures are expected to intensify, further challenging the economic stability of households and businesses alike.
