ISLAMABAD: The government on Saturday increased the price of petrol by Rs8 per litre and high-speed diesel (HSD) by Rs5.16 per litre for the upcoming fortnight, the Petroleum Division announced in a press release.
As a result of the latest adjustment, petrol now costs Rs266.17 per litre, up from Rs258.17. Similarly, the price of HSD has risen to Rs280.86 per litre following the notified increase.
According to the statement, authorities revised petroleum prices in line with recommendations from the Oil and Gas Regulatory Authority. The government reviews fuel prices every two weeks, taking into account fluctuations in international oil markets and exchange rate movements.
The new prices came into effect on March 1 and will remain in effect for the next fortnight.
Impact on transport and inflation
Petrol serves as the primary fuel for private vehicles, motorcycles, rickshaws, and other small transport. Therefore, any increase directly affects the budgets of middle- and lower-middle-income households, many of whom rely on petrol-powered transport for daily commuting.
Meanwhile, HSD fuels heavy transport vehicles and plays a critical role in the agricultural sector. Trucks, buses and trains largely depend on diesel, while tractors, tube-wells and threshers also run on the fuel. Consequently, higher diesel prices often translate into increased transportation costs.
In turn, transporters pass on these additional expenses to consumers, pushing up the prices of vegetables and other essential food items. As a result, analysts view diesel price hikes as inflationary, particularly for food and other daily necessities.
