Petrol price is climbing, hitting people’s pockets hard just before Eid-ul-Fitr. The government has decided to increase the price of petrol to Rs 289.41 per liter, which could lead to more inflation.
Starting from April 1 and lasting until April 15, 2024, the price of petrol will jump up by Rs 9.66 per liter due to a surge in international crude rates. However, there’s some relief for consumers as the price of high-speed diesel (HSD) has been reduced by Rs 3.32 per liter.
In a notice released on Sunday, the Finance Division stated that the new fuel prices would take effect from April 1. They mentioned that while petrol prices rose in the global market over the past two weeks, the price of HSD has slightly decreased.
These changes in prices are in line with the government’s policy of reflecting international market fluctuations in domestic prices. They also mentioned that this reduction in HSD price follows a previous decrease in mid-March.
The government reviews fuel prices every 15 days, considering global oil prices and the local currency’s exchange rate. Since the last review, the rupee has slightly strengthened against the dollar.
This increase in fuel prices follows the new government’s decision to maintain petrol prices in the last review led by Prime Minister Shehbaz Sharif. However, they did lower the price of HSD by Rs 1.77 per liter.
Pakistan, which heavily depends on oil imports, is facing a balance of payments crisis and significant inflation. The rise in fuel prices will further impact the cost of living and transportation, especially since the sale of petroleum products declined by 19% year-on-year in February. This drop was mainly due to reduced gasoline and diesel sales as consumers cut back on spending amid economic slowdown.
To add to the financial strain on consumers, the government is imposing a petroleum development levy (PDL) of Rs 60 per liter on both petrol and HSD.
