Another blow to inflation-hit masses as the prices of petrol and diesel in Pakistan are poised to witness an upward trajectory from April 16, 2024.
The surge comes on the heels of a relentless uptick in global oil rates and the government's strategic decision to escalate levies on petroleum products.
Sources privy to the matter suggested that citizens are expected to bear the brunt of this development, facing a fresh shock as petrol prices are anticipated to soar by over Rs 9 per litre.
Insiders suggested that petrol prices could surge by up to Rs 8 per litre, marking a significant hike from the current price of Rs 289.40 per litre to an expected Rs 298 per litre.
Furthermore, diesel prices are also poised to ascend, with an estimated increase of around Rs 2 per litre. This adjustment would propel the diesel rate to approximately Rs 284.24 per litre, up from its current standing of Rs 282 per litre.
Rupee devaluation and IMF
While unofficial reports circulate, indicating a possible link between the petrol price surge and the government's consideration of rupee devaluation and the strained geopolitical situation in the Middle East, it's crucial to note that the impending hike isn't directly tied to the IMF's recommendations for a GST hike.
Instead, attention is drawn to the government's deliberation on elevating the petroleum levy from its current cap of Rs 60 to a potential Rs 100 per litre.
The existing levy at the maximum limit of Rs 60 per litre may be reevaluated, leading to unprecedented petrol prices in Pakistan.
Current petrol and diesel prices in Pakistan
On April 01, Prime Minister Shehbaz Sharif-led government decided to jack up petrol price by Rs9.66 for the next 15 days.
The finance ministry in a notification stated that as part of the fortnightly revision of prices of petroleum products, on the recommendation of Oil & Gas Regulatory Authority (OGRA), the Government of Pakistan has decided that the consumer prices, with effect from 1st April, 2024.
However, the government decided to slash diesel price by Rs3.32 per litre, it added.
It further said that an increase in the prices of petroleum products will be applied from 12 o'clock tonight till April 15.
Following the significant increase, the new price of petrol is Rs289.41 per litre, while Rs282.24 per litre for HSD, it added.
