Government raises petrol prices by 9.66 per liter

Government’s decision to hike petrol prices by Rs 9.66 per litre, effective from April 1st, makes headlines

In another blow to the inflation-weary public, the government led by Prime Minister Shehbaz Sharif has announced a hike of Rs9.66 per litre in petrol prices for the next 15 days.

The Ministry of Finance, through a notification, disclosed that as part of the biweekly adjustment of petroleum prices, following the recommendation of the Oil & Gas Regulatory Authority (OGRA), the Pakistani government has decided to implement new consumer prices effective April 1, 2024.

However, there’s a contrasting move as diesel prices are slashed by Rs3.32 per litre, stated the notification.

The price adjustment will take effect from midnight tonight until April 15, resulting in petrol costing Rs289.41 per litre and high-speed diesel at Rs282.24 per litre.

Earlier on March 15, despite initial predictions of a potential Rs10 to 11 increase per litre due to import premiums and global price surges, the government chose to keep petrol prices unchanged for the next 15 days.

Geopolitical tensions were cited as the reason behind a $4 per barrel surge in petrol import costs, with import premiums escalating from $12.15 to $13.5 per barrel, thus contributing to the expected rise in petrol prices.

Conversely, diesel prices experienced a downturn in the global market, prompting Pakistan State Oil (PSO) to maintain a stable import premium of $6.50 per barrel.

Consequently, high-speed diesel prices are anticipated to decrease by Rs1.30 to Rs 2.50 per litre.

Recent assessments indicate a $4 rise in petrol prices to $94.5 per barrel, while diesel prices dipped by 60 cents to $98.4 per barrel.

The decision made 15 days ago by the government remains unchanged, keeping petrol at Rs279.75 per litre and reducing diesel prices by Rs1.77 to Rs 285.56 per litre.