In yet another blow to the inflation-weary populace, the government led by Prime Minister Shehbaz Sharif announced a substantial hike in petrol prices by Rs9.66 for the next 15 days.

According to a notification issued by the finance ministry as part of the fortnightly revision of petroleum product prices, on the recommendation of the Oil & Gas Regulatory Authority (OGRA), the Government of Pakistan has decided to implement revised consumer prices effective from April 1, 2024. However, in a partial respite, the government also opted to reduce diesel prices by Rs3.32 per litre. The price adjustments are set to take effect from midnight tonight until April 15.

Also Read: Government Reduces Diesel and Kerosene Prices, Maintains Petrol Price

Following the significant increase, the new price of petrol stands at Rs289.41 per litre, while HSD is priced at Rs282.24 per litre.

On March 15, the government had chosen to maintain petrol prices unchanged for the ensuing 15 days. Initial estimates had hinted at a potential increase ranging from Rs10 to Rs11 per litre during this period, primarily attributed to import premiums and global price escalations.

According to insider sources, geopolitical tensions have caused a $4 surge per barrel in petrol import costs, with import premiums escalating from $12.15 to $13.5 per barrel, thus contributing to the anticipated rise in petrol prices. Conversely, diesel prices observed a downturn in the global market, prompting the Pakistan State Oil (PSO) to sustain a consistent import premium of $6.50 per barrel. Consequently, it is anticipated that high-speed diesel prices will decrease by Rs1.30 to Rs2.50 per litre.

Officials report recent calculations indicating a $4 increase in petrol prices to $94.5 per barrel, while diesel prices have decreased by 60 cents to $98.4 per barrel. The government’s decision from 15 days ago remains effective, keeping petrol at Rs279.75 per litre and reducing diesel prices by Rs1.77 to Rs285.56 per litre.