Petrol price in Pakistan has been hiked by by Rs4.13 per litre, the caretaker government announced at midnight.
Petrol price in Pakistan
The new petrol price is Rs279.75 per litre, a notification from the Finance Division read, which will remain in place till March 15.
The price of high-speed diesel, however, has been kept unchanged at Rs287.33 per litre.
The move comes days before the new coalition government led by the Pakistan Muslim League-Nawaz (PML-N) assumes charge.
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This surge comes in response to shifting international prices and import premiums, presenting a comprehensive outlook on the challenges and intricacies faced by the nation.
International Petrol Price Oscillations
The heartbeat of petrol prices resonates with the ebb and flow of the international oil market. Reports suggest a prospective increase of approximately $0.5 per barrel, propelling the price of petrol to $90.78, while diesel experiences a marginal dip by 8 cents per barrel, resting at $101.05. Concurrently, the import premium, a key determinant in local pricing, rises to $10.45 per barrel for petrol, signaling a complex interplay of global factors.
Petrol Price before March 1
Previously, the petrol price stood at Rs275.62 per litre, while high-speed diesel maintained its position at Rs287.33 per litre.
Petrol price in Pakistan & Fiscal Targets
Against this backdrop, the interim government has set a maximum permissible limit of Rs60 per litre for petroleum levy on both petrol and diesel. With an ambitious target of Rs869 billion for petroleum levy collection in fiscal year 2024, and already having collected about Rs475 billion in the first half, authorities aim to reach a formidable target of around Rs970 billion by year-end, with a revised target of Rs920 billion by June.
Implications on Economy and Everyday Life
Beyond the numerical figures, the anticipated adjustments ripple through the fabric of Pakistan’s economy. The impending rise in the cost of living and transportation raises concerns about the broader impact on various sectors. Geopolitical unrest in the Middle East, coupled with supply challenges, has amplified the global oil prices, thereby affecting Pakistan, a country heavily reliant on imported oil.
Government Responses and Economic Realities
In response to a balance of payments predicament and surging inflation, the government entered a $3 billion loan agreement with the International Monetary Fund in July of the previous year. This pact necessitated tough measures, including tax hikes, increased energy costs, and the adoption of a market-based currency rate.
As Pakistan gets ready for the changes in petrol prices from tonight (March 1, 2024), it’s like opening a book with many chapters. Petrol prices aren’t just numbers; they tell a story about what’s happening worldwide, what the government aims for, and how it affects our country’s money matters. Beyond mere numerical shifts, these fluctuations in petrol prices serve as a nuanced barometer, mirroring the government’s endeavor to maintain equilibrium within the intricate web of a complex and ever-evolving global fuel landscape.
