In a significant blow to consumers, the caretaker government in Pakistan has raised the prices of petrol and high-speed diesel (HSD) once again. This recent increase has pushed the prices over a psychological barrier, marking the first time in the country’s history that petrol and diesel have reached Rs330 per litre.
Over the past month, petrol prices have seen a staggering increase of Rs58.43 per litre, while HSD prices have risen by Rs55.83 per litre. This continuous surge in prices has resulted in the overall cost of petrol and diesel going up by 20% since the caretaker government took charge.
The decision to increase fuel prices was influenced by the rising trend of petroleum prices in the global market. The Ministry of Finance, under the guidance of caretaker Prime Minister Anwaarul Haq Kakar, confirmed the revised prices of petroleum products.
The new ex-depot price for HSD has been set at Rs329.18 per litre, indicating a 5.6% increase from the current rate. However, the retail price at the pump is expected to be even higher than Rs330 per litre. The usage of HSD in the transportation sector, particularly in heavy vehicles, trains, and agricultural engines, plays a significant role in escalating the prices of essential commodities such as vegetables and food items.
Similarly, the revised ex-depot price for petrol has been set at Rs331.38 per litre, reflecting an 8.5% increase. Petrol is primarily consumed by private vehicles, rickshaws, and two-wheelers.
While kerosene and light diesel oil prices remain unchanged for now, the government has implemented the approved increase in sale margins for petroleum dealers and marketing companies. Although the Goods and Services Tax (GST) on all petroleum products is currently zero, the government levies a petroleum development levy (PDL) of Rs60 per litre on petrol and Rs50 per litre on HSD and high octane blending component and 95RON petrol. Additionally, customs duty of about Rs18-22 per litre is applied to petrol and HSD.
The recent hike in fuel prices adds to the burden on consumers already grappling with a 27.4% increase in inflation rates in August. The ripple effect of these price increases is expected to impact the overall cost of living in the country in the coming weeks.
Despite the government’s reasons for the increase, the continuous rise in fuel prices poses several challenges for the public, including increased transportation costs, higher prices of essential goods, and added financial strain on households. Finding sustainable solutions to curb and stabilize fuel prices remains a pressing concern for the government and the people of Pakistan.