In the midst of crippling inflation, the caretaker administration raised petrol prices by more than Rs. 26 and diesel prices by more than Rs. 17 per litre in its fortnightly review on Friday.
According to the Finance Ministry, the decision was made due to an increase in worldwide oil prices.
Current Petrol and Diesel Prices
According to the Finance Division, the price of petrol will rise by Rs. 26.02 per litre, and the price of high-speed diesel (HSD) will rise by Rs. 17.34 per litre. The price of a litre of petrol is now Rs. 331.38, and the price of HSD is Rs. 329.18.
— Ministry of Finance (@FinMinistryPak) September 15, 2023
This is the second time in a month that petroleum product prices have been raised to an all-time high.
The caretaker administration raised fuel and diesel prices by more than Rs. 14 on September 1.
Cause of Increaser in POL Products
According to the Finance Division, the increase was caused by the “increasing trend of petroleum prices in the international market and exchange rate fluctuations.”
The price of petrol increased by Rs. 14.91 per litre, and the price of high-speed diesel (HSD) increased by Rs. 18.44 per litre at the time.
The increase in gasoline prices today was expected due to the surge in global oil prices.
“The rupee appreciation will have a positive impact on the petroleum prices, but it will not be enough to offset the impact of rising global oil prices,” an industry official told a newspaper agency.
Globally Increase in Oil Prices
According to Reuters, oil prices touched a 10-month high on Friday and were on track for a third weekly rise as supply tightness led by Saudi production curbs mixed with optimism about Chinese demand to lift crude.
By 12:15pm EDT (1615 GMT), US West Texas Intermediate futures had risen 62 cents, or 0.7%, to $90.78 per barrel, while Brent crude futures had risen 21 cents, or 0.2%, to $93.91 per barrel.
Both benchmarks reached their highest levels since November 2022 earlier in the session, and are up roughly 4% for the week.
Every two weeks, the government evaluates and modifies petroleum prices based on Ogra’s recommendations.
However, the final decision is made by the finance ministry, which sometimes absorbs a portion of the increase to provide relief to customers.
However, the government is required to hike fuel prices in accordance with a $3 billion standby arrangement with the International Monetary Fund (IMF).
To read our blog on “Petrol price expected to rise about Rs. 16/liter by tomorrow,” click here.