The Pakistani government has raised petrol prices by Rs1.35 and high-speed diesel (HSD) by Rs3.85 per litre, surprising many who anticipated a decrease. This change will remain in effect until November 15.
Price Changes Overview
- New Prices:
- Petrol: Rs248.38 per litre (up from Rs247.03)
- Diesel: Rs255.14 per litre (up from Rs251.29)
- Reductions:
- Light diesel decreased by Rs2.61
- Kerosene decreased by Rs1.48
Reasons for the Price Hike
The Ministry of Finance announced that these price adjustments were based on international market fluctuations. While international prices for petrol and diesel have recently fallen—by about $1.5 and $2.5 per barrel respectively—the government had previously delayed a necessary price adjustment. This led to losses for oil companies, prompting the recent increase.
Background Context
- International Price Trends:
- Average petrol price: dropped from $77.5 to $76 per barrel
- Average HSD price: dropped from $86.5 to $84 per barrel
- Import Premium: Remained stable at $8.7 per barrel for petrol and $5 per barrel for diesel.
- Tax Structure: The government currently imposes a tax of about Rs76 per litre on both petrol and HSD, alongside a petroleum development levy of Rs60 per litre.
Impact on Consumers
The increase in fuel prices is likely to affect transportation costs and, consequently, the prices of goods and services throughout the country. The government’s decision has drawn criticism, especially from oil companies facing inventory losses.
