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Monday May 27, 2024

Petrol price goes up by Rs9.66 per litre

The new fuel prices will be effective from April 1, the Finance Division said in a statement

By News Desk
April 01, 2024
A representational image of a man holding a fuel nozzle at a petrol station. — AFP/File
A representational image of a man holding a fuel nozzle at a petrol station. — AFP/File

ISLAMABAD: The federal government on Sunday increased the price of petrol by Rs9.66 per litre for the next fortnight in line with a surge in international crude prices. However, the price of high-speed diesel (HSD) has been slashed by Rs3.32 per litre.

The new fuel prices will be effective from April 1, the Finance Division said in a statement.

“The price of Petrol (Motor Gasoline) has increased in the international market during the last fortnight, while the price of HSD has marginally declined,” it added.

The statement further said the price adjustments are in line with the government’s policy of passing on the variations of prices in the international market to domestic market. “The consumer price of HSD has accordingly been decreased once again, after a downward revision in the middle of March, 2024.”

The government reviews fuel prices every 15 days and adjusts them based on the movements of global oil prices and the exchange rate of the local currency. The rupee has appreciated slightly against the dollar since the last price revision, trading at around 277.94 per dollar on Friday.

The latest increase in fuel prices came after Prime Minister Shehbaz Sharif-led government kept the price of petrol unchanged in the last fortnightly review after coming into power at the start of this month. It revised the HSD price downward by Rs1.77 per litre.

Pakistan, which imports about 85% of its oil needs, has been grappling with a balance of payments crisis and soaring inflation.

The higher fuel prices will have a knock-on effect on the cost of living and transportation in the country, where the sale of petroleum products declined by 19% year-on-year in February.

The drop was mainly due to lower gasoline and diesel sales, as consumers cut back on their spending amid the economic slowdown.

The government is charging Rs60 per litre petroleum development levy (PDL) on petrol and HSD each.