The caretaker government has announced another increase in petrol price in Pakistan today. According to a notification by the Finance Division, the price of petrol has been increased by Rs. 4.13, taking the rate to Rs. 279.75.  from current Rs. 275.62. Meanwhile, diesel price didn’t observe any change.  The new prices will be applicable from March 1, 2024, for the next fortnight. 

Earlier, media reports claimed that the price of petrol would 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 liter from the 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 liter, 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 1. 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.

What is your take on the petrol price in Pakistan? Please tell us in the comments section.