Islamabad, March 31, 2024 – Pakistan has announced a significant increase of Rs 9.66 per liter in the price of petrol, effective from April 1, 2024.
This decision, made by the government in a late-night session, has caught many citizens off guard, raising concerns over its impact on the cost of living and transportation across the nation.
The price hike brings the cost of petrol to Rs 289.41 per liter, marking a substantial surge from the previous price of Rs 279.75. Meanwhile, in a contrasting adjustment, the price of high-speed diesel (HSD) has been reduced by Rs 3.32 per liter, now priced at Rs 282.24 per liter.
Explaining the rationale behind the adjustment, the Finance Division stated, “The price of Petrol (Motor Gasoline) has increased in the international market during the last fortnight, while the price of HSD has marginally declined.” This aligns with the government’s policy of reflecting international market fluctuations in domestic fuel prices.
The government, under the leadership of Prime Minister Shehbaz Sharif, reviews fuel prices every 15 days, considering global oil prices and currency exchange rates. Notably, the Pakistani rupee has appreciated slightly against the dollar since the last price revision, trading at around 277.94 per dollar on Friday.
This latest increase in fuel prices comes after a period of stability, as the newly elected government had maintained petrol prices in the previous fortnightly review. However, the price of HSD was revised downward by Rs 1.77 per liter during that period.
Pakistan, heavily reliant on oil imports to meet about 85% of its energy needs, has been facing challenges due to a balance of payments crisis and persistent inflation. The recent surge in fuel prices is expected to exacerbate these issues, with implications for the overall cost of living and transportation.
Moreover, the government’s decision to levy a petroleum development levy (PDL) of Rs 60 per liter on both petrol and HSD further adds to the financial burden on consumers. This levy, coupled with the increased fuel prices, is likely to impact various sectors of the economy and consumer spending habits.
The economic slowdown has already had noticeable effects on fuel consumption, with petroleum product sales declining by 19% year-on-year in February. This decline primarily stemmed from reduced gasoline and diesel sales as consumers adjusted their spending amidst economic uncertainties.
As citizens brace themselves for the repercussions of this significant petrol price hike, concerns regarding inflation and the overall economic outlook loom large. The government faces mounting pressure to address these challenges effectively while ensuring the welfare of its citizens in the face of economic turbulence.
