As of April 16, 2024, the prices of petrol and diesel in Pakistan are set to experience a notable surge, dealing another blow to the inflation-weary populace. This increase is spurred by a relentless rise in global oil rates and the government’s strategic decision to elevate levies on petroleum products. Insider sources suggest that citizens are bracing for the impact, as petrol prices are expected to skyrocket by over Rs 9 per litre.

Insiders anticipate a substantial hike in petrol prices, with projections indicating an increase of up to Rs 8 per litre, potentially pushing the price from its current Rs 289.40 per litre to an estimated Rs 298 per litre. Additionally, diesel prices are also poised to climb, with an estimated increase of approximately Rs 2 per litre. This adjustment would see the diesel rate rise to around Rs 284.24 per litre, up from its current Rs 282 per litre.

Also Read: Government Raises Petrol Price by Rs9 per Litre, Cuts Diesel Rates

While speculation circulates regarding possible factors influencing the petrol price surge, such as rupee devaluation and the strained geopolitical situation in the Middle East, it’s essential to clarify that the impending hike isn’t directly linked to the IMF’s recommendations for a GST increase. Instead, attention is drawn to the government’s contemplation of raising the petroleum levy from its current cap of Rs 60 to a potential Rs 100 per litre. The existing levy, currently at the maximum limit of Rs 60 per litre, may undergo reassessment, resulting in unprecedented petrol prices in Pakistan.

Regarding recent developments, on April 1, the Shehbaz Sharif-led government announced a hike in petrol prices by Rs 9.66 for the next 15 days. The finance ministry, in a notification, stated that as part of the fortnightly revision of petroleum product prices, based on the recommendation of the Oil & Gas Regulatory Authority (OGRA), the government had decided on consumer price adjustments effective April 1, 2024. However, the government also opted to reduce diesel prices by Rs 3.32 per litre.

Following this significant increase, the new price of petrol stands at Rs 289.41 per litre, with diesel priced at Rs 282.24 per litre, effective until April 15. As Pakistan braces for yet another wave of fuel price hikes, concerns persist among the populace regarding the economic ramifications and the ensuing impact on their daily lives.