Govt increases petrol price by Re0.56 per litre

ISLAMABAD: The federal government on Tuesday notified an increase of Re0.56 per litre in petrol price for the first fortnight of 2025, starting from January 1.

"The Oil and Gas Regulatory Authority (OGRA) has worked out the consumer prices of petroleum products in view of the fluctuations in the international market in the last fortnight," stated a notification issued by the Finance Division.

As per the notification, the price of petrol has reached from Rs252.10 per litre to Rs252.66, after a slight increase of Re0.56.

Meanwhile, the price of high-speed diesel (HSD) went up by Rs2.96, reaching Rs258.34 per litre from Rs255.38 per litre. 

In the previous fortnight, the government had kept the prices of petrol unchanged at Rs252.10 per litre besides reducing the rate of high-speed diesel by Rs3.05 to Rs255.38 per litre.

Similarly, the prices of kerosene and light diesel were also slashed by Rs3.32 and Rs2.78 to Rs161.66 per litre and Rs148.95 per litre, respectively.

Petrol is mainly used in private transportation, small vehicles, rickshaws, and two-wheelers. Higher fuel prices significantly impact the budgets of the members of the middle and lower-middle classes, who primarily consume petrol for commuting. On the other hand, a significant portion of the transport sector relies on high-speed diesel.

Its price is considered inflationary since it is predominantly used in heavy goods transport vehicles, trucks, buses, trains, and agricultural machinery such as tractors, tube wells, and threshers.

The consumption of high-speed diesel particularly contributes to the increased prices of vegetables and other food items.