Pakistan witnesses unprecedented surge in petrol price, record-breaking hike hits consumers hard

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Pakistan witnesses unprecedented surge in petrol price, record-breaking hike hits consumers hard
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In the Midst of Soaring Inflation, Pakistan's Interim Government Implements Unprecedented Surge in Fuel Prices: Petrol Increases by Over Rs26 and Diesel by More Than Rs17 per Litre in Bi-weekly Review.

In its latest bi-weekly review, the caretaker government of Pakistan has announced a staggering increase in petrol and diesel prices, adding to the financial burden faced by citizens. The Finance Ministry cited the surge in global oil prices as the primary reason for this decision.

According to the Finance Division, the price of petrol is set to rise by a substantial Rs26.02 per litre, while the price of high-speed diesel (HSD) will see an increase of Rs17.34 per litre. This marks a significant shift, with the new price for one litre of petrol standing at Rs331.38 and HSD at Rs329.18.

This alarming price hike comes merely a month after the last increase, which also set historical records. On September 1, the caretaker government raised petrol and diesel prices by over Rs14 due to the relentless surge in international oil prices and fluctuations in exchange rates.

Today's increase in petrol prices was expected, as global oil prices have been steadily rising. Despite the recent appreciation of the Pakistani rupee, it is insufficient to counterbalance the impact of escalating global oil costs, according to industry experts.

Reuters reports that oil prices have reached a 10-month high, driven by Saudi Arabian production cuts and optimism surrounding Chinese demand. US West Texas Intermediate futures rose 62 cents to $90.78 a barrel, while Brent crude futures increased 21 cents to $93.91 a barrel. Both benchmarks hit their highest levels since November 2022 and have gained approximately 4% for the week.

The government conducts regular reviews of petroleum prices every two weeks, guided by Ogra's recommendations. However, the final decision rests with the finance ministry, which occasionally absorbs part of the increase to alleviate the burden on consumers.

Nevertheless, the government is obligated to raise fuel prices in accordance with its agreement with the International Monetary Fund (IMF) under a $3 billion standby arrangement."

 

Pakistan State Time is a versatile digital news and media website that covers all latest news developments on 24/7 basis.

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