Today March 16, 2023 – petroleum prices in Pakistan

Today March 16, 2023 – petroleum prices in Pakistan

Pakistan has increased petroleum prices effective from March 16, 2023 for next fortnight ending March 31, 2023.

Following are the effective petroleum prices today March 16, 2023:

MS (Petrol)272.00
Light Diesel Oil184.68

The country increased the petroleum prices a day earlier which are effective from Thursday March 16, 2023.

READ MORE: Petroleum prices in Pakistan increased from March 16: Petrol goes up to Rs272

A statement issued by the Finance Division, stated that in the last fortnight, Platts Singapore prices registered an increase.

This along with a depreciation of Pakistani Rupee (PKR) has resulted in an increase of petroleum products in Pakistan.

Accordingly, the price of MS (Petrol) has increased by Rs5 per liter and price of High Speed Diesel (HSD) has increased by Rs13 per liter.

READ MORE: Petroleum prices in Pakistan may go up from March 16

The increase in price of kerosene oil has been kept at Rs2.56 by reducing government dues on it. Similarly, price of light diesel oil has been kept constant by adjusting government dues as well.

Earlier, experts had predicted that petroleum prices in Pakistan would go up from March 16, 2023 owing for significant depreciation in local currency.

The continuous decline in rupee value has increased the possibility of further hike in petroleum prices for the next fortnight.

READ MORE: Rupee devaluation main culprit behind surge in petroleum prices

The local currency has recorded significant decline during the past one year. Weakness in rupee value against the dollar made the local currency worst currency in the region. The rupee crashed by 57 per cent during past one year to PKR 280.77 to the dollar on March 10, 2023 when compared with PKR 178.63 on March 10, 2022 in the interbank foreign exchange market.

On the other hand the prices of crude oil in international market recorded sharp decline. The prices of benchmark Brent crude oil recorded around 30 per cent decline during one year despite Russia-Ukraine War. Brent crude oil prices were $115 per barrel during last March 2022 and it fell to $83 in the current month of March 2023.

READ MORE: Pakistan ready to announce new petroleum prices on March 15

In contrast, the domestic prices of petrol and high speed diesel (HSD) recorded massive increase of 78 per cent and 94 per cent, respectively on Year on Year (YoY) basis by week ended March 09, 2023.

The comparison of global and domestic fuel prices showed the local market should have lower prices and people of the country would have been provided relief.