As of April 12, 2024, the petroleum prices in Pakistan stand at Rs 289.41 per liter for petrol and Rs 285.56 per liter for High-Speed Diesel (HSD), maintaining the rates set in the previous fortnight.
The decision to keep the prices unchanged comes amidst a backdrop of significant volatility in international crude oil markets.
Following the latest revision on March 31, 2024, where the government opted to maintain prices for the first half of April, concerns were raised regarding the potential impact on consumers amidst rising global crude rates. The current petrol price of Rs 289.41 per liter reflects an increase of Rs 9.66 per liter, effective from April 1 to April 15, 2024. Conversely, HSD prices have experienced a slight reduction by Rs 3.32 per liter during the same period, providing a marginal relief for consumers.
The decision to keep petrol prices stable while adjusting HSD rates downward was made in line with the government’s policy of aligning domestic prices with international market fluctuations. The Finance Division issued a notice on Sunday confirming the implementation of the new fuel prices, attributing the rise in petrol prices to corresponding increases in global markets.
Pakistan, heavily reliant on oil imports, faces economic challenges including a balance of payments crisis and inflationary pressures. The increase in fuel prices is expected to further burden consumers, affecting the cost of living and transportation expenses. Recent data indicates a decline of 19% year-on-year in petroleum product sales, primarily due to reduced gasoline and diesel sales amid an economic slowdown.
In addition to the adjustment in fuel prices, consumers also contend with the imposition of a petroleum development levy (PDL) of Rs 60 per liter on both petrol and HSD. While this levy aims to address revenue challenges, it adds strain to household budgets already stretched by rising prices.
The government’s decision to review fuel prices every 15 days underscores the delicate balance required to manage international market dynamics alongside local economic conditions. Despite challenges, there are slight positive indicators, with the rupee showing a slight strengthening against the dollar since the last review. Policymakers remain vigilant, navigating complexities to ensure stability in fuel prices amidst volatile global conditions.
As Pakistan continues to grapple with economic uncertainties, the management of petroleum prices emerges as a critical factor influencing the broader economic landscape and the daily lives of its citizens. With each fortnightly revision, the government faces the challenge of striking a balance between the need for fiscal sustainability and the welfare of its people in an ever-changing global energy market.
