Get ready, Pakistan! Tonight, the petrol prices in Pakistan along with diesel and other petroleum products is expected to go up. Why? It’s all because of a global increase in oil prices and the country’s dwindling economic graph, to some extent.

Here’s the scoop: media reports have revealed that the price of petrol will jump by Rs. 5 (2%) taking the price to Rs. 280.62 from the old rate of Rs. 275.62. As for high-speed diesel, get ready to pay Rs. 2 more, reaching Rs. 289.33 per litre from previous Rs. 287.33. Even light diesel oil and kerosene oil won’t be spared, with increases of Rs. 0.80 and Rs. 0.70 per litre, respectively.

The Reason

Wondering why these changes happen? Every 15 days, Pakistan adjusts fuel prices based on global oil trends and the dollar’s value against the Pakistani rupee. Speaking of which, the rupee has been holding steady lately.

These new prices kick in on March 1st. When deciding these prices, the government considers factors like the needs of Pakistan State Oil, taxes, and global oil prices. And this time, geopolitical tensions and supply concerns have driven up oil prices by nearly 10% in the first two months of 2024.

Why does this matter? Well, Pakistan imports about 85% of its oil. With a struggling economy and inflation hitting 28.3% in January, every paisa counts. Last July, the government signed a deal with the International Monetary Fund to stabilize the economy. But it comes with tough conditions like higher taxes and energy costs

Now, brace yourselves: as fuel prices rise, so does the cost of living and transportation. Already, in January, petroleum product sales dropped by 4% because people were spending less amid economic worries.

So, while the wheels of your car might be turning, so are the gears of the global oil market—and they’re not stopping anytime soon.