Islamabad, October 31, 2024 – In an announcement made on Thursday, the government of Pakistan revealed a revision in petroleum prices, effective November 1, 2024. For the first half of the month, the price of petrol has seen a modest rise, impacting consumers across the country amid shifting global market trends.
As per a notification from the Finance Division, the price of petrol has been raised by Rs1.35 per litre, bringing the new rate to Rs248.38 per litre, up from Rs247.03 in the previous fortnight. “The Oil and Gas Regulatory Authority (OGRA) has calculated consumer prices for petroleum products based on recent international market fluctuations,” stated a Finance Division press release issued late Thursday.
Similarly, high-speed diesel (HSD), a critical fuel for transportation and agriculture sectors of Pakistan, experienced a more pronounced increase of Rs3.85 per litre. The new price now stands at Rs255.14 per litre, up from Rs251.29. This adjustment is expected to have ripple effects on the broader economy, as HSD is essential to the transport of goods, agricultural operations, and public transit, areas closely tied to inflationary pressures.
However, not all petroleum products saw increases. In a slight relief to consumers, the price of kerosene oil has been reduced by Rs1.48 per litre, bringing the new rate to Rs161.54, down from Rs163.02. Light diesel oil also saw a cut, with its price dropping by Rs2.61 per litre to Rs147.51 from the previous Rs150.12.
These price fluctuations in petrol and diesel carry significant socioeconomic implications. Petrol, primarily used in private vehicles, motorcycles, and rickshaws, is a vital component of daily life for the middle and lower-middle classes, who are especially sensitive to fuel cost changes. Rising petrol prices directly impact the budget of these households, limiting their disposable income and amplifying their cost of living.
In contrast, high-speed diesel’s price hike is expected to exert an inflationary influence on essential goods. HSD powers a majority of Pakistan’s heavy transport vehicles, buses, and trains, as well as agricultural machinery such as tractors and tube wells. An increase in HSD cost not only raises logistics and freight expenses but also translates into higher costs for food items and other basic goods.
With the fortnightly price adjustment ending on November 15, Pakistan’s government will continue to monitor global oil markets and domestic needs, balancing fiscal responsibilities with the economic burdens faced by citizens.