ISLAMABAD: The government has increased the price of petrol and high-speed diesel by Rs0.56 and Rs2.96 per liter, respectively, according to the finance ministry on Tuesday.
Fuel prices are fixed on a fortnightly basis by in Pakistan, which adjusts them after evaluating changes in the global energy market and considering rupee-dollar parity. This allows the government to pass on the net effect to consumers to finance the country’s fuel imports.
“The Oil and Gas Regulatory Authority has worked out the consumer prices of petroleum products in view of the fluctuations in the international market in the last fortnight,” the finance ministry said in a notification.
“It has accordingly revised the prices of the petroleum products for the next fortnight starting from Jan. 1, 2025,” it added.
After the latest revision, a liter of petrol will cost Rs252.66, while high-speed diesel will sell for Rs258.34 per liter.
Petrol is mostly used in Pakistan for private transport, small vehicles, rickshaws and two-wheelers. At the same time, any increase in the price of diesel is considered highly inflationary, as it is mostly used to power heavy transport vehicles and particularly increases the prices of vegetables and other eatables.
On Dec. 15, Pakistan reduced the price of high-speed diesel by Rs3 per liter but kept the price of petrol unchanged.
Earlier, on Dec. 1, the price of petrol was increased by Rs3.72 per liter due to varying petroleum product prices in the international market.
Fuel prices in energy-starved Pakistan are instrumental in contributing to inflation. The South Asian country saw inflation hit a record high of 38 percent in May 2023.
Pakistan’s annual consumer inflation slowed to 4.9 percent in November, cooling from 7.2 percent in October.
