ISLAMABAD, October 16, 2024 – In a significant move, Pakistan has announced a revision in petroleum prices, marking the second adjustment for October. This revision comes as part of the government’s ongoing effort to align domestic fuel prices with fluctuating international market rates. The new prices take effect from October 16, 2024.
Notably, the price of High-Speed Diesel (HSD) has witnessed a substantial increase in Pakistan, reflecting a rise of PKR 5 per liter. As a result, the price of HSD in Pakistan now stands at PKR 251.29 per liter, up from the previous rate of PKR 246.29. This hike in diesel prices is attributed to the global surge in crude oil prices, driven by geopolitical tensions and supply chain disruptions, which continue to exert pressure on energy markets worldwide.
The price adjustment in diesel is expected to have wide-reaching implications, as HSD is a critical fuel for Pakistan’s agricultural and transportation sectors. Diesel is essential for running heavy machinery, powering trucks, and facilitating the movement of goods across the country. Consequently, the increase in diesel prices may contribute to inflationary pressures, particularly in the cost of goods and services reliant on transportation.
In contrast, the government has decided to maintain the price of petrol at its current level, providing some respite to consumers. Petrol prices remain unchanged at PKR 247.03 per liter. This decision is seen as a strategic move to balance the impact of rising diesel prices and to mitigate the burden on everyday commuters and private vehicle owners who heavily rely on petrol.
The decision to keep petrol prices steady is expected to stabilize the cost of personal transportation, especially in urban areas where petrol consumption is predominant. However, the unchanged petrol prices may not be enough to fully offset the inflationary impact of the diesel price hike.
In a statement issued on Tuesday, the Ministry of Finance emphasized that the Oil and Gas Regulatory Authority (OGRA) had calculated the new consumer prices based on fluctuations in the international market. The ministry reiterated its commitment to adjusting fuel prices in accordance with global trends, aiming to shield the domestic economy from extreme volatility.
As global oil markets remain turbulent, Pakistan’s economy faces the dual challenge of managing rising import costs while ensuring affordability for consumers. The government’s careful calibration of fuel prices is expected to continue as it navigates the complexities of both local economic conditions and international market forces.