In a much-awaited relief for consumers, the federal government of Pakistan has announced a reduction in petroleum prices for the upcoming fortnight. The new prices, issued by the Ministry of Finance, will take effect from February 16, 2024.
This marks the first decrease in petrol prices after three consecutive hikes, providing some respite amid fluctuating global oil prices.
Latest Petrol and Diesel Prices in Pakistan
According to the official notification, the revised fuel prices are as follows:
Petrol Price: Reduced by Rs. 1 – New price: Rs. 256.13 per liter
High-Speed Diesel (HSD) Price: Reduced by Rs. 4 – New price: Rs. 263.95 per liter
The updated rates will remain in effect for the next 15 days, after which another review will take place based on international oil market trends.
Over the past few months, Pakistani consumers have faced repeated price increases, significantly affecting transportation costs and inflation.
- In the last fortnightly review, the government raised petrol prices by Rs. 1 to Rs. 257.13 per liter.
- High-speed diesel (HSD) saw a steeper increase of Rs. 7, reaching Rs. 267.95 per liter.
This latest price cut comes as a welcome change after a series of continuous hikes that had burdened both consumers and businesses.
Pakistan’s petroleum prices are closely linked to global oil markets, and any changes in international crude prices directly impact domestic fuel rates.
The Oil and Gas Regulatory Authority (OGRA) plays a key role in advising the government on these adjustments.
Why Did the Government Reduce Fuel Prices?
The Finance Division stated that the fuel price adjustments were made in response to:
International crude oil market trends
Exchange rate fluctuations
Changes in import costs and refining expenses
The decrease in petrol and diesel prices will have the following effects:
Relief for Transport Sector: Lower fuel costs could reduce fares for public transport and logistics companies.
Impact on Inflation: Fuel prices play a critical role in determining the overall cost of goods and services. A reduction in diesel prices could help stabilize inflation, especially in sectors reliant on transportation.
Industrial and Agricultural Benefits: Many industries and agricultural operations depend on diesel-powered machinery. Lower diesel prices could reduce production costs for businesses.
Comparison of Petrol and Diesel Prices – Last Fortnight vs. Current Rates
| Product | Previous Price (Rs./Liter) | New Price (Rs./Liter) | Change |
|---|---|---|---|
| Petrol | 257.13 | 256.13 | -1.00 |
| Diesel | 267.95 | 263.95 | -4.00 |
The government has reassured citizens that it is making efforts to keep fuel prices stable while balancing economic challenges. The reduction in prices aligns with efforts to ease the financial burden on the public.
However, the overall economic situation, including foreign exchange reserves and global crude oil prices, will continue to influence future fuel price decisions.
The latest fuel price cut provides some relief to consumers, businesses, and industries. However, pakistan petrol given the unpredictable nature of global oil markets, it remains to be seen whether prices will continue to drop or increase in the coming months.
