Petrol Price To Hike In Pakistan From 1st March

The departing government is poised to raise the prices of petrol and high-speed diesel (HSD) for the first half of March 2024, citing adjustments in international prices and import premiums, according to reports in local media. It is anticipated that the cost of petrol will see an increase of around Rs4 per litre, driven by shifts in the global market prices of major petroleum products.

Comparatively, diesel prices are expected to rise by Rs1-1.5 per litre, contingent on the final exchange rate, with a slightly lower adjustment than petrol. The current rise in the price of petrol stands at approximately $0.5 per barrel, reaching $90.78, while diesel prices have experienced a dip of 8 cents per barrel, settling at $101.05. The import premium paid by the Pakistan State Oil (PSO) for petrol has surged to $10.45 per barrel in the current fortnight, up from $9.47 per barrel, whereas the premium for HSD remains stable at $6.5 per barrel.

Read more: Expected Rise In Pakistans Petrol Prices, March 1

The interim government has already set the maximum permissible limit for petroleum levy at Rs60 per litre for both petrol and diesel. This move is in line with the FY24 target for petroleum levy collection, which stands at Rs869 billion. Approximately Rs475 billion has been collected in the first half of the fiscal year, and authorities aim to collect around Rs970 billion by the end of the year. A revised target of Rs920 billion has been set for June.

In recent weeks, the noteworthy increases in petrol and electricity prices have significantly contributed to the high inflation rate, reaching 27.5% in January, as measured by the consumer price index.