Petrol price likely to be increased from March 01. Pakistan is bracing for another round of fuel price hikes as global oil prices surge, prompted by a rebound in demand.
Industry insiders suggest that motorists could face a 2% increase in petrol prices, equating to a rise of Rs5 per litre, pushing it up to Rs280.62. Similarly, high-speed diesel is anticipated to climb by Rs2 to Rs289.33 per litre.
Authorities have indicated that light diesel oil could see a jump of Rs0.80 per litre, while kerosene oil may rise by Rs0.70 per litre.
These adjustments, reflecting the volatile global oil market and stable rupee-dollar exchange rate, are part of Pakistan’s bi-monthly petroleum price review.
The new prices, set to be unveiled tonight, will come into effect on March 1.
Government deliberations on petroleum prices take into consideration expected fuel consumption, supply costs for state-owned entities like Pakistan State Oil, and monthly tax targets.
This comes on the heels of recent price hikes, with petrol and diesel witnessing increases of Rs8.37 and Rs2.73 per litre, respectively, over the past fortnight.
Geopolitical tensions in the Middle East and supply concerns have driven global crude oil prices up by nearly 10% in the first two months of 2024.
Pakistan, heavily reliant on imported oil to meet about 85% of its needs, faces challenges including a precarious balance of payments situation and soaring inflation, which hit 28.3% in January.
In response, the government secured a $3 billion loan from the International Monetary Fund last July, committing to a slew of austerity measures including tax hikes and energy cost adjustments.
As Petrol price likely to be increased from March 01, the impending fuel price hike is expected to further strain consumers, with increased living and transportation expenses looming large.
January saw a 4% year-on-year decline in petroleum product sales, driven by reduced spending amid economic slowdown, particularly in petrol and diesel consumption.
