The caretaker government has announced a decrease in petrol price in Pakistan today. According to details, the new price of petrol will be Rs. 259.34 instead of previous Rs. 267.34. Meanwhile, the price of diesel remained unchanged.  The new prices will be implemented from January 16, 2024 for the next fortnight.

Earlier the media reports suggested that the government is going to reduce the petrol price by Rs. 5 per liter, meanwhile some experts believed that the price will come down by Rs. 8-10/liter. The changes in rates were expected due to the PKR’s performance against the USD and international oil prices. As per official sources, the data collected suggested a reduction of Rs. 5/liter in petrol and Rs. 0.26/liter in high-speed diesel.

Furthermore, the numbers of last 13 days have suggested a reduction of Rs. 3.29/liter in kerosene oil and Rs. 1.75/liter for light diesel oil (LDO).

“The likely ex-refinery price of petrol from January 16 is likely to stand at Rs. 180.29/liter,” the data claimed.

No Change Last Time 

On January 1, the caretaker federal government announced no change in petrol and diesel price in Pakistan.  In a notification, the Finance Division said: “The government of Pakistan has decided to maintain the current prices of petrol and high-speed diesel (HSD) during the fortnight starting January 1, 2024.” The recommendation to maintain the rates was given by the Oil and Gas Regulatory Authority (OGRA).

Pakistan relies heavily on import oil as the country imports 70% of petroleum goods to meet local demand. In November 2023, the country saw a 5.76% year-on-year increase in petroleum goods import bill, taking it to $1.32 billion from $1.25 billion in the same period last year. This indicated a steady rise in imports and the country’s expenditure.

Last year, Pakistan witnessed the highest-ever petrol and diesel price in Pakistan, with petrol reaching Rs. 331/liter in September. We did a detailed blog on petroleum goods prices in the country in 2023, and you can read it here. During the first quarter of 2023, the high prices led to low consumption of fuel; however, the second quarter observed relative stability in the prices, even a decrease of prices, hinting stabler circumstances. 

Economic and political stability is essential for Pakistan to maintain affordable prices. Hopefully, 2024 will be a more stable year for the country’s economy, and the masses could sigh relief.

What is your take on current petrol and diesel prices in Pakistan? Please tell us in the comments section.