The caretaker government of Pakistan has announced an increase in fuel prices, raising the cost of petrol by Rs2.73 and diesel by Rs8.37. In addition to these adjustments, Light Diesel Oil (LDO) witnessed a change of +Rs4.58, and Kerosene experienced a change of +Rs1.95.
After the recent adjustment, effective from February 16, the price of petrol in Pakistan will stand at Rs275.62 per litre. Simultaneously, the new price for High-Speed Diesel (HSD) will be Rs287.33 per litre, as stated in the official notification. This adjustment is part of the regular fortnightly revisions in fuel prices, guided by recommendations from the Oil and Gas Regulatory Authority (OGRA).
Prior to the recent adjustment, the caretaker government in Pakistan implemented a significant increase in fuel prices. The price of petrol saw a sharp hike of Rs13.55 per litre, while high-speed diesel (HSD) experienced an increase of Rs2.15 per litre.
The fluctuation in fuel prices is attributed to various factors, prominently influenced by international oil prices and the exchange rate between the dollar and the rupee. Given that a significant portion of Pakistan’s oil is imported, these external factors play a crucial role in determining domestic fuel prices.
It’s worth noting that adjustments in fuel prices have a cascading impact on Pakistan’s economy, extending to the cost of essential commodities. As fuel prices rise, transportation costs increase, leading to higher prices for goods and services. This, in turn, can affect inflation rates and the overall cost of living for the general population.
The government’s periodic revisions in fuel prices reflect its efforts to align domestic rates with the global market conditions. However, such adjustments often generate discussions and debates regarding their implications on inflation, economic stability, and the financial well-being of citizens.
