In the wake of the upcoming Eid-ul-Fitr holidays, the Government of Pakistan has announced updated petroleum prices, effective until the next fortnight revision on April 15, 2024.
The current prices stand at Rs 289.41 per liter for petrol and Rs 285.56 per liter for High-Speed Diesel (HSD). These adjustments come amidst global market fluctuations and local economic challenges.
The decision to maintain the petrol price at Rs 289.41 per liter was made following a significant surge in international crude rates. This hike of Rs 9.66 per liter, effective from April 1 to April 15, 2024, raises concerns over potential inflationary pressures on consumers. However, there is a slight respite for consumers with the price of HSD reduced by Rs 3.32 per liter during the same period.
The Finance Division released a notice on Sunday confirming the implementation of the new fuel prices. They attributed the rise in petrol prices to corresponding increases in global markets, whereas HSD prices experienced a slight decrease.
These adjustments align with the government’s policy of reflecting international market fluctuations in domestic prices. The recent reduction in HSD price follows a similar decrease in mid-March, demonstrating the government’s commitment to managing fuel prices amidst economic challenges.
Pakistan’s economy, heavily reliant on oil imports, faces a significant balance of payments crisis and inflationary pressures. The increase in fuel prices is expected to exacerbate the cost of living and transportation expenses. Notably, petroleum product sales declined by 19% year-on-year in February, primarily driven by reduced gasoline and diesel sales amid economic slowdown.
Adding to the financial burden on consumers is the imposition of a petroleum development levy (PDL) of Rs 60 per liter on both petrol and HSD. This levy aims to address revenue challenges but may further strain household budgets already stretched by rising prices.
The government’s decision to review fuel prices every 15 days underscores the importance of balancing international market dynamics with local economic conditions. With the rupee slightly strengthening against the dollar since the last review, policymakers continue to navigate challenges to ensure stability in fuel prices amidst volatile global conditions.
This announcement comes at a critical time as Pakistan prepares to celebrate Eid-ul-Fitr, and consumers grapple with the economic fallout of rising fuel prices. As the government strives to strike a delicate balance between economic stability and affordability, the impact of these adjustments on the broader economy and the populace remains to be seen.
