Petrol Price In Pakistan Increased By Rs. 14.91/Liter
Petrol price in Pakistan has been increased by Rs. 14.91 per liter by the government of Pakistan on August 31, 2023. After the latest hike, the new petrol price is Rs. 305.36 compared to Rs. 290.45. Meanwhile, the high-speed diesel price (HSD) saw a jump of rs. 18.44/liter, taking the price to Rs. 311.84 from Rs. 293.40.
According to the Finance Division, due to the increase in petroleum prices in the international market and exchange rate variations, the government has decided to revise the existing consumer prices of petroleum products. New prices will be effective from 1st September 2023.
Reasons Behind Price Hike
The primary factor influencing these price hikes is the exchange rate, which has experienced a significant depreciation in the last fifteen days. The average exchange rate for the forthcoming fortnightly price review is estimated to be Rs. 298.18 against the US dollar, compared to the previous rate of Rs. 288.25 per dollar. This marks an increase of Rs. . 9.93. The recent decline in the value of the rupee is attributed to heightened pressure due to increased imports.
Since petroleum product prices are determined based on the average exchange rate of Pakistan State Oil (PSO), it’s anticipated that the estimated exchange rate impact would be Rs. 2 per liter for petrol and Rs. 7 per liter for high-speed diesel.
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Last Jump in Petrol Price in Pakistan?
On August 15, a substantial increase of nearly?Rs. 17.50?in petrol prices and?Rs. 20?in high-speed diesel prices was announced. The new petrol price now stands at?Rs. 290.45, while the high-speed diesel price is now?Rs. 293.40?per liter. This jarring surge follows a similar price escalation of Rs. 20 initiated by the previous government in the month of July.
?The incumbent government has raised petrol price by almost Rs. 40 in the?last two fortnight revisions, taking it to a historic high. The reason behind these jumps was, first, to support the International Monetary Fund (IMF) program and then an uneven surge recorded in the international oil market.
This time, when the mighty dollar has just marked a whopping triple century against the Pakistani rupee, the exchange rate would be held responsible for the fresh increase in fuel prices.?