The caretaker federal government has announced a significant increase in petrol and diesel prices, effective immediately, in line with the recommendations of the Oil and Gas Regulatory Authority (OGRA).
According to a notification, the price of petrol has risen by Rs2.73 per litre, reaching Rs275.62 per litre, up from the previous Rs272.89 per litre.
Similarly, the price of high-speed diesel (HSD) has surged by Rs8.37 per litre, from Rs278.96 per litre to Rs287.33 per litre.
Read more: Diesel price may see Rs8 per litre increase
The finance ministry, in a statement, emphasised that these adjustments were made in accordance with the suggestions put forth by OGRA.
Petrol is predominantly utilized in motorbikes and cars, while diesel is essential in the transport and agriculture sectors.
Fluctuations in the price of High-Speed Diesel (HSD) directly affect consumers, leading to inflationary pressures. With gas load-shedding affecting the CNG sector in February, petrol, often an alternative, is expected to witness high demand.
In Punjab, there is no indigenous gas available for the CNG sector for several years and the entire CNG sector is supplied imported gas. The CNG outlets in other provinces also face load-shedding due to gas shortages in the country.
Pakistan is a net importer of petroleum products, therefore, premium on oil imports also reflects in the prices. Import premium on petrol is estimated at $9.47 per barrel, whereas, the premium on HSD has been estimated to increase to $6.50 per barrel from $5.30 per barrel.
The government previously jacked up the price of petrol by Rs13.55 per litre to Rs272.89 on Feb 1.
Also read: ECC approves increase in gas prices
Earlier in the day, the federal cabinet increased gas prices for residential users up to 67% and for fertiliser plants by 700% to recover additional Rs242 billion from all the consumers – in a decision that attempts to bring some equity in the rates of the fast depleting natural asset.
Immediately after the cabinet meeting, the Oil and Gas Regulatory Authority (OGRA) issued the notification of the new gas prices aimed at meeting the International Monetary Fund’s (IMF) condition to raise prices by February 15th –Thursday.
The decision would take effect from the first of February and the new bills would be issued with revised rates, showed the notification.
