By Staff Reporter
ISLAMABAD: The caretaker government announced a sharp increase in fuel prices on Wednesday, citing higher international costs and import premiums.
The new price of petrol, the most widely used fuel in Pakistan, rose by 5.2 percent to Rs272.89, up from Rs259.34 , according to a notification from the Finance Division. The price of high-speed diesel, which is used in transport and agriculture sectors, increased by 1 percent to Rs278.96 per liter.
The notification did not mention any changes in the prices of light-diesel oil and kerosene oil, which are used by low-income households.
The fuel price hike, which will take effect from Feb. 1, was higher than expected, as industry officials had earlier estimated an increase of 2 to 3.5 percent for the next fortnight in line with the rise in the global market.
The government said the price revision was based on the recommendations of the Oil and Gas Regulatory Authority, the state-run body that regulates the petroleum sector.
“Government of Pakistan has decided to bring changes in the current prices of petroleum products during the fortnight starting from 1st February 2024, as recommended by Oil and Gas Regulatory Authority (OGRA),” the Finance Division said.
“After the revision, the price of petrol now stands at Rs272.89 per litre, while the price of high-speed diesel stands at Rs278.96 after a hike of Rs2.75 per litre.”
The government has already imposed a maximum petroleum levy of 60 rupees per liter on both petrol and diesel, as part of its fiscal consolidation efforts under an International Monetary Fund program.
The latest fuel price increase comes as Pakistan grapples with a soaring inflation rate, which hit 29.7 percent in December, the highest in the region. The main drivers of inflation have been rising energy and food prices, which have eroded the purchasing power of the masses.
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