By Staff Reporter
ISLAMABAD: The government has raised fuel prices by 1.57 percent for petrol and 2.88 percent for high-speed diesel (HSD), effective until April 30, amidst fluctuations in the international oil market.
The new prices, set at Rs293.94 for petrol and Rs290.38 for HSD per litre, are expected to strain the budgets of the middle and lower-middle classes, who rely heavily on these fuels for transportation.
The Oil and Gas Regulatory Authority’s price review reflects the global market’s volatility, with petrol and HSD prices previously increasing by $4 and $4.50 per barrel, respectively. Despite a 21 percent decrease in petrol’s import premium and a strengthened rupee, consumers face a notable rise in fuel costs.
Furthermore, kerosene oil prices have risen by Rs6.69 to Rs193.8 per litre, and light diesel by Rs6.54 to Rs174.34 per litre.
“The prices of Petroleum products have seen an increasing trend in the international market during the last fortnight. The Oil & Gas Regulatory Authority (OGRA) has worked out the consumer prices, based on the price variations in the international market,” a statement said on Monday.
Fuel prices are reviewed biweekly by the government, adjusting to global oil price fluctuations and local currency exchange rates. Pakistan, which imports approximately 85% of its oil, faces a balance of payments crisis and high inflation.
The increase in fuel costs is expected to impact the cost of living and transportation, as February saw a 19 percent year-on-year decline in petroleum product sales, primarily due to reduced gasoline and diesel purchases amid economic challenges. The government imposes an Rs60 per litre petroleum development levy on both petrol and HSD.
This measure is part of the government’s effort to collect Rs869 billion in levies on petroleum products, in line with its commitments to the International Monetary Fund (IMF).
In its previous fuel price review, the government raised the price of petrol by Rs9.66 per litre. Conversely, the price of diesel saw a reduction of Rs3.32 per litre.
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