Islamabad, November 30, 2024: The government of Pakistan has announced an increase in the prices of key petroleum products for the first half of December 2024. The adjustment, based on recommendations from the Oil and Gas Regulatory Authority (OGRA), reflects global market trends and rising oil prices.
According to a notification issued by the Finance Division, the revised prices will be effective from December 1 to December 15, 2024. High-speed diesel (HSD) sees an increase of Rs 3.29, raising its price to Rs 258.43 per liter from the previous Rs 255.15. Similarly, petrol prices have been raised by Rs 3.72, bringing the cost to Rs 252.10 per liter, up from Rs 248.38.
However, there is some relief in the prices of kerosene oil and light diesel oil (LDO). Kerosene has been reduced by Rs 0.62 per liter, now priced at Rs 164.98, while LDO sees a slight decrease of Rs 0.48, bringing its price down to Rs 151.73 per liter.
This price adjustment follows OGRA’s fortnightly review, which considers variations in international oil prices and adjustments to the Inland Freight Equalization Margin (IFEM). The current hike reflects increased transportation costs and a higher premium of $9.80 per barrel on petrol imports.
In previous reviews, Pakistan’s government absorbed some IFEM increases to shield consumers from the full impact of global oil price fluctuations. However, the recent surge in international crude prices has limited its ability to provide relief this time. The rising cost of fuel is expected to increase transportation expenses and exacerbate inflationary pressures on households and businesses.
Pakistan has consistently struggled with balancing public welfare and fiscal constraints amidst ongoing economic challenges. The hike in fuel prices comes at a time when the country is grappling with inflation, adding to the cost-of-living pressures faced by citizens.
The government’s decision to increase prices has sparked concerns among various sectors, as higher fuel costs may lead to a chain reaction affecting goods transportation and services. Pakistan’s citizens are now bracing for potential knock-on effects as these revised rates come into effect.
