Petrol Price In Pakistan Increased By Rs. 2.73

The caretake government has increased the petrol price in Pakistan by Rs. 2.73. According to a notification, the new price of petrol is Rs. 275.62? instead of Rs. ?272.89. Meanwhile, the diesel price saw a jump of Rs. 8.37,? taking the rate to Rs. 287.33? from Rs. ?278.96.

Earlier media reports suggested that fuel prices can be hiked up to Rs. 11/liter. The reason behind this anticipated hike in petrol prices in Pakistan lies in the global oil market, where prices have been increasing, coupled with a rise in import premiums. Consequently, any moderate improvement in the exchange rate would be nullified.

The new prices will be implemented from February 16, 2024.

It’s important to note that on January 31st, just before the general elections, the government had already increased petrol and diesel prices by Rs. 13.55 and Rs. 2.75 per liter, respectively. This led to petrol being priced at Rs. 272.89 per liter and diesel at Rs. 278.96 per liter.

Global Market Trends

As per the media reports, global market prices for petrol and diesel have risen over the past 15 days. Additionally, Pakistan State Oil had to incur extra payments for import premiums due to a slight increase in the value of the rupee against the dollar.

Over the past two weeks, petrol prices increased from $88.7 to approximately $89.9 per barrel, while diesel rose from $98.4 to $101.82 per barrel. Furthermore, the rupee saw a slight rise against the dollar, settling at around Rs. 279.7.

The government continues to levy premiums on cargo, maintaining them at $9.7 per barrel for petrol and $6.5 per barrel for diesel.

It’s worth mentioning that the government is already receiving a significant amount in taxes, approximately Rs. 82 per liter, on both petrol and diesel. Despite not imposing sales tax on petroleum products, it has set the Petroleum Development Levy at Rs. 60 per liter for both products. Additionally, there’s a customs duty of roughly Rs. 17 to 20 per liter on petrol and diesel.