The caretaker government has announced an increase in the price of petrol by Rs13.55 per litre for the next two weeks. The new price is now Rs272.89 per litre, up from the previous price of Rs259.34. Additionally, the price of high-speed diesel (HSD) has also been increased by Rs2.75 to a new price of Rs278.96 per litre.
There has been no mention of any changes in the prices of light-diesel oil (LDO) and kerosene oil. The increase in petrol price is higher than anticipated, as it was initially expected to go up by Rs5-9 per litre. This increase is due to higher international prices and import premiums, despite minor exchange rate gains.
Sources have noted that the prices of petroleum products have increased in the international market, resulting in the hike in prices in Pakistan. The government has already achieved the maximum permissible limit of Rs60 per litre in petroleum levy on both petrol and HSD, as set by law. This levy is a key factor in the high rate of CPI-based inflation, which was recorded at 29.7 per cent in December 2023.
Despite the increase in prices, the government aims to collect over Rs920bn in petroleum levy by the end of June. This is in line with the commitments made with the International Monetary Fund.