Govt may increase petrol prices by Rs4.75 today

Pakistan braces for petrol price hike of Rs 4.75 per litre in the next fuel adjustment. Industry sources confirm the ex-refinery price rises from Rs270.03 to Rs274.77 per litre.

Global FOB gasoline prices jumped from $139.03 to $143.01 per barrel, driving the increase. Premium charges and incidentals were slightly down but were unable to make up the global rise. The previous price hike by Pakistan State Oil (PSO) of Rs1.41 per litre was also over, putting pressure on the high price. The hike is subject to final notification with regard to new petroleum duty.

High speed diesel (HSD) price goes up by a meagre Rs0.20 per litre, from Rs334.74 to Rs334.93. Truckers and farmers welcome customs duty reductions and policy adjustments to negate most increases in international diesel. The pump prices are currently high at Rs 399.86 per litre for petrol and Rs 399.58 per litre for diesel. The Government considers taxes, levies and exchange rates before finalising the fortnightly rates.

The impact on consumers is immediate, as they have to pay for their petrol costs to get to their destinations, whether it be travelling from one place to another or transporting goods. Bus fares and freight charges are maintained at a stable level due to diesel stability. Prices continue to be volatile, due to the uncertainty around the oil market and regional tensions.

This adjustment is a consequence of Pakistan’s dependence on importations in the fluctuating markets. Families make budgets and drivers find the best route. Increased government intervention (such as duty relief) demonstrates an attempt to balance the burden on consumers.