| Welcome to Global Village Space

Saturday, April 13, 2024

Gov. Raises Fuel Prices Amidst International Market Volatility

The caretaker government raises petrol and high-speed diesel prices amidst international market volatility, citing factors such as attacks in the Red Sea and fluctuating import premiums, impacting fiscal management and budgetary targets.

The caretaker government announced a hike in petroleum prices, citing the situation arising from the movement of oil vessels and cargo ships in the Red Sea due to attacks from Yemen Huthis.

Effective immediately, petrol prices surged by Rs2.73 per litre to Rs275.62 and high-speed diesel (HSD) increased by Rs8.73 per litre to Rs287.33 for the next fortnight starting from February 16.

Reasons Behind the Increase

The increase in petrol and HSD prices was recommended by the Oil and Gas Regulatory Authority (OGRA) and attributed to higher international market rates and import premiums.

Read More: Rakhi Sawant Pledges Support for PTI and Imran Khan

Over the past fortnight, both major petroleum products witnessed a surge in international prices, leading to an upward adjustment in fuel costs. Despite the appreciation of the rupee against the US dollar, Pakistan State Oil faced higher import premiums on petrol, contributing to the price hike.

Impact

The ex-depot prices of petrol and HSD saw significant increments, with petrol reaching Rs275.62 per litre and HSD reaching Rs287.33 per litre. The government emphasized that while the rupee had strengthened against the dollar, the rise in international oil prices and import premiums offset this gain.

With the government already collecting the maximum petroleum levy allowed by law and aiming to meet its budget target of Rs869 billion for the fiscal year, the fuel price hike reflects ongoing efforts to manage fiscal responsibilities in line with international market dynamics and agreements with organizations like the International Monetary Fund (IMF).