Petrol prices are surged by Rs9.66 per liter for the next 15 days due to a spike in international crude rates, while the cost of high-speed diesel (HSD) is decreased by Rs3.32 per lite.
This adjustment, effective from April 1, was announced by the Finance Division in a notification issued on Sunday.
Explaining the rationale behind the price adjustments, the notification highlighted the recent uptick in petrol prices on the global market, while noting a slight decline in the price of HSD.
It emphasized that these adjustments are aligned with the government’s policy of reflecting international price variations in the domestic market. Notably, this marks a second reduction in the consumer price of HSD following a downward revision in mid-March 2024.
The increase in petrol prices is attributed to a rise in the premium from $12.15/barrel to $13.507/barrel, representing a $1.45/barrel increment.
The government’s periodic review of fuel prices, conducted every 15 days, takes into account fluctuations in global oil prices and the local currency’s exchange rate, which has seen a slight appreciation against the dollar since the last price revision.
The decision to adjust fuel prices comes after the Prime Minister Shehbaz Sharif-led government maintained petrol prices unchanged during its initial fortnightly review upon assuming office earlier this month. However, it previously revised the price of HSD downward by Rs1.77 per litre.
Pakistan, heavily reliant on oil imports for about 85% of its needs, continues to grapple with a balance of payments crisis and soaring inflation. The increase in fuel prices is expected to further impact the cost of living and transportation in the country, where petroleum product sales saw a 19% year-on-year decline in February.
This decline was primarily driven by reduced gasoline and diesel sales as consumers adjusted their spending amidst economic challenges.
It’s worth noting that the government imposes a petroleum development levy (PDL) of Rs60 per litre on both petrol and HSD.
