The interim government in Pakistan has raised the petrol price by Rs. 2.73, resulting in a new price of Rs. 275.62 instead of the previous Rs. 272.89. Simultaneously, diesel prices have surged by Rs. 8.37, reaching Rs. 287.33 from Rs. 278.96, according to an official notification.

Earlier reports from the media had indicated the possibility of a fuel price hike of up to Rs. 11 per liter. This expected increase in petrol prices in Pakistan is attributed to the global oil market’s upward trend, marked by rising prices and increased import premiums. Any potential gains from a moderate improvement in the exchange rate are anticipated to be offset.

The revised prices are set to be effective from February 16, 2024.

It’s crucial to highlight that just before the general elections on January 31st, the government had already raised petrol and diesel prices by Rs. 13.55 and Rs. 2.75 per liter, respectively. Consequently, petrol was priced at Rs. 272.89 per liter and diesel at Rs. 278.96 per liter.

Global Market Trends

Media reports indicate a continuous increase in global market prices for petrol and diesel over the past 15 days. Pakistan State Oil faced additional expenses for import premiums due to a slight appreciation of the rupee against the dollar.

In the last two weeks, petrol prices rose from $88.7 to approximately $89.9 per barrel, while diesel increased from $98.4 to $101.82 per barrel. The rupee experienced a slight uptick against the dollar, stabilizing at around Rs. 279.7.

The government maintains cargo premiums at $9.7 per barrel for petrol and $6.5 per barrel for diesel.

Notably, the government is collecting a substantial amount in taxes, approximately Rs. 82 per liter, on petrol and diesel. Despite not imposing a sales tax on petroleum products, the Petroleum Development Levy is set at Rs. 60 per liter for both. Additionally, there is a customs duty ranging from Rs. 17 to 20 per liter on petrol and diesel.