ISLAMABAD: The federal government on Sunday jacked up the price of petrol by Rs9.66 per litre for the next fortnight, starting April 1, 2024, which would have a serious inflationary impact on the lives of ordinary citizens, especially ahead of Eidul Fitr.
The government, however, decreased the rate of high-speed diesel (HSD) by Rs3.32. After the hike, the price of petrol reached Rs289.41 while HSD is available at Rs282.24.
According to a notification issued by the finance ministry, the price of petrol was increased as per the recommendation of the Oil & Gas Regulatory Authority (Ogra).
The Finance Ministry said in a statement that the changes were due to a corresponding rise in petrol prices and a decrease in HSD prices in the international market.
It added the change was in line with the government’s policy of passing on price variations in the international market to the domestic market. The new prices of petroleum products will be effective from April 1, 2024 (today).
Meanwhile, the prices of kerosene oil and light-diesel oil were reduced by Rs2.27 and Rs.38 per litre, respectively, to Rs186.39 and Rs167.80.
Kerosene is mostly used by unscrupulous elements, who mix it with petrol, and to some extent for lighting and heating in remote areas. Light diesel oil is consumed by flour mills and a couple of power plants.
Petrol is predominantly used in motorbikes and cars as an alternative to compressed natural gas (CNG), especially in the Punjab province where indigenous gas is not available at CNG retail outlets.
HSD is primarily used in the agriculture and transport sectors, and this price reduction may help alleviate inflation to some extent.
The recent increase in petrol price is attributed to a rise in the premium from $12.15/barrel to $13.507/barrel, marking a $1.45/barrel increment.
The new prices of petroleum products will be implemented at 12am, which will remain applicable for the next 15 days.
The decision followed up on Prime Minister Shehbaz Sharif’s announcement on March 15 in which he increased the price of diesel by Rs1.77 per litre while keeping the price of petrol unchanged.
